Technical Insights for PULTEGROUP INC (NYSE:PHM): Is a Breakout Imminent?

Our stock screener has identified PULTEGROUP INC (NYSE:PHM) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:PHM.

What is the technical picture of NYSE:PHM telling us.

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall PHM gets a technical rating of 9 out of 10. Both in the recent history as in the last year, PHM has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, PHM did better than 97% of all other stocks. On top of that, PHM also shows a nice and consistent pattern of rising prices.
• PHM is one of the better performing stocks in the Household Durables industry, it outperforms 89% of 68 stocks in the same industry.
• PHM is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month PHM has a been trading in the 99.03 - 106.39 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

Our latest full technical report of PHM contains the most current technical analsysis.

How do we evaluate the setup for NYSE:PHM?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:PHM currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

PHM has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 104.52. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 103.09, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for PHM in the last couple of days, which is a good sign.

How to trade NYSE:PHM?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.