Pultegroup Inc. - (PHM) - March 31, 2021 

Since we last mentioned homebuilder PulteGroup (PHM) back in July, the shares have climbed from $37.30 to $52.75, a gain of 41.4%. Bouncing back from a recent dip into the red zone, the shares have climbed back up toward the top of the Yellow Neutral Zone in the SIA S&P 500 Index Report and in 137th place, are 10 spots away from a return to the Green Zone. Boosted by a gain of 9.1% in the last week, the shares climbed 7 spots yesterday and have moved up 52 places in the last month.

A major breakout is underway in PulteGroup (PHM) shares this week. The shares have blasted through the top of a $40.00 to $50.00 trading range that had persisted for six months while the shares digested their initial recovery rally up from $17.00 a year ago which included two bullish Ascending Triangle breakouts.

The $40.00 level provides an example of how support and resistance can reverse polarity at certain levels. In this case, $40.00 becoming solid support after a breakout indicated strong, consistent underlying accumulation remains in place. Following this recent breakout, the $50.00 round number may emerge as initial support followed by the 50-day moving average near $46.00.

Based on measured moves from recent pattern completions, next potential upside resistance may appear in the $56.00-$57.00 range, then $60.00, $63.00 and $70.00 on trend.

PulteGroup (PHM) shares staged a strong initial recovery rally last year clawing back all of their bear market losses within six months. The shares then spent the last six months consolidating these gains in the $41.20 to $49.20. This month, the shares have embarked on a new advance, breaking out of their trading range, clearing the $50.00 round number hurdle and completing a bullish Spread Triple Top breakout which was then confirmed by a bullish Double Top breakout.

Next potential upside resistance levels appear near $62.45 based on a horizontal count, and then $68.90 based on a vertical count. Initial support appears near $48.25 based on a 3-box reversal and a retest of a recent breakout point.

With a perfect SMAX score of 10, PHM is exhibiting near-term strength across the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.