PHM Pulte Group

PHM has just recently broken away from a long sideways coiling pattern.  These are the kinds of patterns we look for since they can hold the most potential for movement once a threshold is broken on either side of the range.

In this case, price has moved decisively above the 4 year trading band and accordingly, we expect that a new up leg is underway.  We note that numerous indicators support this new leg including an advancing SCTR and RSI statistic.  We can see that the RSI indicator had been supported numerous times at the 50 area before advancing, a very positive sign.  Finally, prices are now above the 50 and 200 period moving averages, so the wind is at our back. A preliminary projection of this move is towards the $35 target area.

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