In today’s Super Seasonals Trade of the Week we will look at D.R. Horton (DHI).
D.R. Horton, Inc. is a homebuilding company, which engages in the construction and sale of single-family housing. In general, the company’s fundamentals are pretty solid. Investors will be paying attention to the company’s earnings release, slated for November 7th.
The stock has had a really good run in the past 12 months, although the past 3 months has had a pretty good sell-off. The technical ratings are in a Sell, while the Analysts have it a Buy.
Below are the seasonal stats of D.R. Horton going back to 1992. 90% of the time the stock has gone up over the next 4 trading months…
Below is an image of the Competitors in the industry, they have a tendency to go up as well in the next week or so…
Below is a chart for the reader who believes the stock has found solid support, is consolidating, and might breakout to the upside. Also, a 2:1 (Reward: Risk ratio) is drawn for illustrative purposes.
Below is a chart for a reader who wants to see further upside confirmation, and is looking for the price to break above the Oct 11 high of 109.28. Also, a 2:1 (Reward: Risk ratio) is drawn for illustrative purposes.
Below is a chart for a reader who is looking for a high demand zone YTD (Year-to-Date). The reader might look to buy shares in that area ($92 “region”), and potentially target a ($110 “area”) reversion to the mean type trade. Also, a 2:1 (Reward: Risk ratio) is drawn for illustrative purposes.
As you likely know, there are literally dozens of solid ways to approach trading D.R. Horton (DHI) with a bullish bias. The decision of how to best invest in the stock or trade the options is an individualized decision, unfortunately there is no one best way. Hopefully this information has proved worth your time. Please remember, do your homework, and fully understand the risk before trading anything.
To learn more about seasonal information on D.R. Horton (DHI) and other solid seasonal opportunities click here SuperSeasonals . For other seasonal opportunities, please click on the link below to access the Super Seasonals software:
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