PulteGroup Inc. rallied from about $10 to $24 (A-B), then stayed in a horizontal trading range mostly between $15 and $24 for about three years (dashed lines). The recent 52-week high (C) is bullish, but only a sustained rise above $24 to $25 would confirm a breakout from the trading range, renewed investor interest and the start of a new up-trend. The stock is somewhat overbought and may be subject to some minor profit taking toward ±$22, but only a sustained decline below $20 to $20.50 would be negative. A rise above $24 to $25 would signal Point & Figure targets of $28 and $32. The large trading range (dashed lines) supports significantly higher targets.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.comReport Typo/Error