Beazer Homes Inc. (BZH) is scheduled to release their first-quarter fiscal 2021 results after the closing bell Thursday. The homebuilding industry has been "on fire" recently due to a number of factors like low interest rates, tight supply and new mobility of employees being able to work from home, wherever that may be.
Let's check out a few charts and indicators.
In the daily bar chart of BZH, below, we can see that the shares have made a four-fold advance from the lows of March and April. Prices are trading above the rising 50-day moving average line and the bullish 200-day moving average line. A bullish golden cross buy signal can be seen at the beginning of September.
The trading volume has remained active the entire rally and the On-Balance-Volume (OBV) line has been generally positive since April. The trend-following Moving Average Convergence Divergence (MACD) oscillator has stayed above the zero line since May.
In the weekly bar chart of BZH, below, we went back five years to give us some perspective. Prices have broken above the highs of 2019 and early 2020 but they have yet to break the highs of late 2017 in the $23 area. The 40-week moving average line is positive.
The weekly OBV line is steady and the MACD oscillator is bullish.
In this long-term weekly bar chart of BZH, below, we go back 10 years to see how prices behaved a few years after the early (and crazy) 2006 peak in the housing industry. This "log scaled" chart shows prices in a wide, downward sloping channel with prices poised to break above the upper downtrend line (not drawn).
In this daily Point and Figure chart of BZH, below, we can see a potential upside price target in the $31 area.
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In this second Point and Figure chart of BZH, below, we used weekly close-only price data with a five-box reversal. A lot of "noise" has been filtered out and the history includes the 2009 low. Here the software is projecting a price target of $80.
Bottom-line strategy: I have no special knowledge of what BZH is going to report, however, the charts are telling me that stock prices for this homebuilder have a lot higher to go in this secular bull market. Aggressive traders should look to buy any price correction in the weeks ahead. Risk - $14.
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