D.R. Horton Inc. stayed in a large trading range mostly between $17.50 (U.S.) and $25 for almost two years (dashed lines). It then rallied above this range to signal renewed investor interest and the start of a new up-leg (A).
During the recent market sell-off, the stock pulled back to support near its moving average and the rising trend-line (B) and now appears ready to resume the up-trend. Only a sustained decline below $28 would be negative. Point & Figure measurements provide targets of $34 and $39. Higher targets are visible.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.