PHM rises to highest close since August 25th
PulteGroup Inc. (PHM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PHM ended Wednesday at 46.72 surging $1.67 (3.71%), notably outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. Today's close at 46.72 marks the highest recorded closing price since August 25th. Closing above Tuesday's high at 46.38, the market confirmed its breakout through the previous session high after trading up to $0.80 above it intraday.
Daily Candlestick Chart (PHM as at Sep 16, 2020):
Wednesday's trading range has been $1.78 (3.9%), that's above the last trading month's daily average range of $1.48. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PHM.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 20-day moving average at 45.57. When this moving average was crossed above the last time on Monday, PHM actually lost -1.36% on the following trading day. Prices are trading close to the key technical resistance level at 47.43 (R1).
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 48.00, upside momentum might accelerate should PulteGroup 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 Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for PulteGroup. Out of 425 times, PHM closed higher 55.29% 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 56.00% with an average market move of 0.77%.