Don't Ignore This Chart!

DR Horton Looks Poised to Continue Bigger Trend

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DR Horton (DHI) is part of the housing group and the stock is in a long-term uptrend. I based this trend assessment on three things. First, the 50-day EMA is above the 200-day. Second, the 200-day EMA is rising. Third, the stock hit a 52-week high in July. DHI pulled back after hitting this high and firmed in the broken resistance zone. This is a classic tenet of technical analysis: broken resistance turns support and vice versa. It looks like this pullback is ending because DHI surged around 2% on Monday and the PPO (5,30,1) moved above its 5-day EMA. 

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--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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