PulteGroup (PHM) broke out over its April/May highs and looks strong enough to make new calendar year highs. Let's review the charts and indicators before this home builder puts on another level.
In this daily bar of PHM, below, we can see how prices and the moving averages tracked higher the past four months. PHM is now above both the rising 50-day average and the rising 200-day line. The daily On-Balance-Volume (OBV) line has been strong the past twelve months but we can see a second rise from early February after prices corrected. The Moving Average Convergence Divergence (MACD) has turned up above the zero line for a fresh outright go long signal.
In this weekly bar chart of PHM, below, we can see that prices have rallied above the rising 40-week moving average line. The weekly OBV line is turning up after a correction and the MACD oscillator just crossed to a buy from above the zero line.
In this Point and Figure chart of PHM, below, we can see an upside breakout at $31.65 and a tentative upside price objective of $40.21.
Bottom line: PHM has broken out on the upside and traders could go long here and on any shallow dip under $32 if available. Risk below $29 for now looking for gains to the $40 area.