DHI closes higher for the 7th day in a row
D.R. Horton Inc. (DHI) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, DHI ended the week 14.51% higher at 54.06 after gaining $1.06 (2.0%) today on low volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 54.06 marks the highest recorded closing price since March 6th. Trading up to $0.58 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 53.84, D. R. Horton confirmed its breakout through the prior session high after trading up to $0.46 above it intraday.
Daily Candlestick Chart (DHI as at May 22, 2020):
Friday's trading range has been $1.51 (2.83%), that's below the last trading month's daily average range of $1.93. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DHI.
Buyers managed to take out the key technical resistance level at 53.53 (now S1), which is likely to act as support going forward. The last time this happened on May 15th, DHI gained 9.96% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for D. R. Horton. Out of 35 times, DHI closed lower 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 51.43% with an average market move of -1.47%.