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Pulte Homes Inc, Darden Restaurants, Inc., DR Horton Inc. – Technical Analysis

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Today’s report seeks to spot the stocks that show the bullish indicators on and off the charts.   These are the stocks that have MACD’s that are just about to give a “buy” signal by making a bullish crossover as well as providing bullish signals with respect to the candlesticks on the charts.

Highlighting: D R HORTON INC (NYSE:DHI), DARDEN RESTAURANTS (NYSE:DRI), PULTE HOMES, INC. (NYSE:PHM)

Stocks were flat on Monday, revealing median gains of only 0.02%.   Of the 675 equities analyzed, 340 advanced, 323 declined, and 12 stayed as flat as the market.   RSI indicates that over 16% of stocks are overbought and stochastics push this stat even further at 58% overbought, even after this stale day.   Volumes declined by 7.4% as investors contemplated their next move.

image Chart courtesy of StockCharts.com
D R HORTON INC (DHI)
12.96  + 0.09 (0.7%)
Support 2 Support 1 Pivot Point Resistance 1 Resistance 2
12.71 12.84 12.91 13.04 13.11
Expected Short-Term Trading Range: 11.68 – 13.1
Support & Resistance Analysis Neutral  
MACD Analysis   Positive/Increasing MACD
MACD vs. Signal Below/Thinning 0.127
RSI Analysis   Bullish   RSI
Stochastic (Fast) Analysis Neutral   59.202
50-Day MA Analysis Above 50-Day MA %K (fast)
200-Day MA Analysis Above 200-Day MA 63.694
Critical Level Analysis    
D R HORTON INC (DHI) Seasonality
Analysis has revealed that with a buy date of October 25 and a sell date of April 26, investors have benefited from a total return of 2428.97% over the last 10 years.   This scenario has shown positive results in 9 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of October 22 and a sell date of April 26, producing a total return over the same 10-year range of 2039.43% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 234.57%.
Comments:

With housing starts expected to be released next week, this stock is making a break now to the upside.   This stock has seen a downturn along with the market and is just now coming back in the black, heftily beating expectations of an EPS of -0.13 back in February with a take of 0.56 for the quarter.   Seasonality is mildly positive between now and May, and this should no doubt be the trend this year as well with consumers taking advantage of low rates and lightening credit restrictions to enter the housing market.

DR Horton Seasonal Chart

News Headlines for D R HORTON INC (DHI)
[feedsnap, 3]http://us.rd.yahoo.com/finance/news/rss/add/*http://finance.yahoo.com/rss/headline?s=DHI[/feedsnap]
image Chart courtesy of StockCharts.com
DARDEN RESTAURANTS (DRI)
41.99  + 1.01 (2.46%)
Support 2 Support 1 Pivot Point Resistance 1 Resistance 2
40.49 41.24 41.75 42.50 43.01
Expected Short-Term Trading Range: 36.88 – 41.07
Support & Resistance Analysis Broke Upr Resistance (2)
MACD Analysis   Positive/Increasing MACD
MACD vs. Signal Below/Thinning 1.084
RSI Analysis   Increasingly Overbought RSI
Stochastic (Fast) Analysis Increasingly Overbought 70.900
50-Day MA Analysis Above 50-Day MA %K (fast)
200-Day MA Analysis Above 200-Day MA 88.559
Critical Level Analysis Broke Above Previous Trend
DARDEN RESTAURANTS (DRI) Seasonality
Analysis has revealed that with a buy date of September 7 and a sell date of April 26, investors have benefited from a total return of 455.61% over the last 10 years.   This scenario has shown positive results in 8 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of March 12 and a sell date of March 30, producing a total return over the same 10-year range of 137.37% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 222.11%.
Comments:

This stock commonly shows strong seasonality around this time of year leading up to and surpassing the earnings release on March 24th.   The stock, which commonly receives gains of 13% on average between now and the end of April, had a significant breakout to the upside today.   The fundamentals are sound for this equity and present a valuation that is about right at current levels.     The company has well positioned itself to benefit from slow and steady growth and as a result has overtaken many of its rivals that have acted to the contrary.   The stock is currently above its expected trading range as it forms a new upward trend corresponding nicely to the seasonal strengths that favorably impact this stock.

Darden Restaurants Seasonal Chart

News Headlines for DARDEN RESTAURANTS (DRI)
[feedsnap, 3]http://us.rd.yahoo.com/finance/news/rss/add/*http://finance.yahoo.com/rss/headline?s=DRI[/feedsnap]
image Chart courtesy of StockCharts.com
PULTE HOMES, INC. (PHM)
11.42  + 0.19 (1.69%)
Support 2 Support 1 Pivot Point Resistance 1 Resistance 2
11.01 11.22 11.35 11.56 11.69
Expected Short-Term Trading Range: 10.41 – 11.53
Support & Resistance Analysis Broke Lwr Resistance (1)
MACD Analysis   Positive/Increasing MACD
MACD vs. Signal Below/Thinning 0.066
RSI Analysis   Bullish   RSI
Stochastic (Fast) Analysis Neutral   59.389
50-Day MA Analysis Above 50-Day MA %K (fast)
200-Day MA Analysis Above 200-Day MA 70.803
Critical Level Analysis    
PULTE HOMES, INC. (PHM) Seasonality
Analysis has revealed that with a buy date of October 25 and a sell date of April 26, investors have benefited from a total return of 800.45% over the last 10 years.   This scenario has shown positive results in 8 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of November 9 and a sell date of April 26, producing a total return over the same 10-year range of 432.01% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 87.62%.
Comments:

Comments for this stock are much the same as for the other homebuilder identified in this report.   Institutions are being seen accumulating this stock on net and seasonal influences are again mildly positive.   Companies in this space have been operating in the red for some time now and a rebound is surely expected.   This stock is currently trading at the upper ranges of its expected scale.

Plute Homes Seasonal Chart

News Headlines for PULTE HOMES, INC. (PHM)
[feedsnap, 3]http://us.rd.yahoo.com/finance/news/rss/add/*http://finance.yahoo.com/rss/headline?s=PHM[/feedsnap]
Equity Clock – By The Numbers will be offered following each trading day.
Disclosure: Mr. Vialoux does not own securities mentioned in this report.
Disclaimer: Comments and opinions offered in this report at EquityClock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities.
Data offered in this report is believed to be accurate, but is not guaranteed.

 

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