DHI soars, gaining $2.60 (3.62%) within a single day
D.R. Horton Inc. (DHI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
DHI finished Wednesday at 74.37 surging $2.60 (3.62%), significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on July 27th, DHI actually lost -2.99% on the following trading day. Today's close at 74.37 marks the highest recorded closing price since August 25th. Closing above Tuesday's high at 73.63, D. R. Horton confirmed its breakout through the prior session high after trading up to $1.69 above it intraday.
Daily Candlestick Chart (DHI as at Sep 16, 2020):
Wednesday's trading range has been $2.85 (3.92%), that's above the last trading month's daily average range of $2.41. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DHI.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 20-day moving average at 72.51.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 77.45, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for D. R. Horton. Out of 153 times, DHI closed higher 53.59% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.82% with an average market move of 0.81%.