Real Estate & Homebuilders Setups

D.R Horton (DHI):

Positioning: Long

Reasoning: Declining interest rates are a tailwind for homebuilders. Price broke above the Ichimoku Cloud and is trending above the EMAs. RSI is overbought, so look to enter a position on a pullback.

Entry: Buy on a pullback close to the 5 EMA around $152. Alternatively, buy on an oversold RSI reading on the 30 minute chart. Be mindful of earnings on 7/18. It may be prudent to wait until after the earnings release to enter a position.

Stop-Loss: A stop-loss order could be set below the 9 EMA or 21 EMA.

Profit Targets: The previous high is $165 (3% profit). The Yearly R1 Pivot Point is at $175 (9% profit)

Cycles: Cycles are supportive until early August. The Cycles Composite (blue) and Energy Cycle (pink) top around 8/6. The Seasonal Cycle (green) tops around 8/10.