In his Real Money column "These Do-It-Yourself at Home Stocks Have Staying Power" Jim Cramer said the DIY home remodeling bull market is still alive and well and there are plenty of ways to play it.
My deck at home could use some attention so let's check out AZEK and TREX.
In the daily candlestick chart of AZEK, below, we do not have a lot of price history to work with but what we see so far is not bullish. The shares rallied into late August and made a small double-top pattern. A decline evolved and then there was a rebound in late September. This rebound looks like it stopped at the underside of the double-top formation. The slopes of the 20-day and 50-day moving averages are still positive but it will not take much of a decline to close below these two indicators.
The On-Balance-Volume (OBV) line shows a hard decline in September telling me that many traders liquidated their positions. The Moving Average Convergence Divergence (MACD) oscillator has been narrowing and could soon cross to the downside.
In the daily candlestick chart of TREX, below, we can see some issues with the indicators. Prices have rallied significantly from their March lows but some warning signs have surfaced.
The OBV line has worked slightly lower the past four months as prices have continued higher. This is a bearish divergence and not a positive sign. The 12-day price momentum study shows at price momentum has slowed from May to now and that too is an issue going forward.