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DR Horton Inc. - (DHI) - February 9, 2021 

Homebuilder DR Horton (DHI) recently returned to the Green Favored Zone of the SIA S&P 500 Index Report from a dip down into the red zone and continues to climb up the rankings. In the last month, the shares have moved up 248 places to 68th place, including a gain of 22 spots yesterday.

A classic, textbook breakout is underway in DR Horton (DHI) shares. For the last six months, the shares had been consolidating gains from a major recovery rally between $65.00 and $80.00. Last month, the shares tried to break out intraday, but faltered and fell back. After establishing a higher low above their 50-day average, the shares have come under renewed accumulation, breaking through the channel top and closing above $80.00 yesterday to signal the start of a new advance.

Next potential upside resistance appears between $95.00, based on a measured move from the recent trading range, and the $100.00 round number. Initial support moves up to the $80.00 breakout point from $75.00.

DR Horton (DHI) shares have staged a major breakout this month, completing two bullish Spread Double Top patters, ending a sideways consolidation phase and signaling the start of a new advance.

Upside resistance tests appear near $89.70 and $95.20 based on horizontal counts, then the $100.00 round number and $111.50 where vertical and horizontal counts converge. Initial support appears near $76.50 where a 3-box reversal aligns with a recent breakout point.

With its bullish SMAX score increasing to 8, DHI is exhibiting near-term strength against the asset classes.

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