DR Horton Inc

AAA

For today's chart we've chosen to take a look at DR Horton Inc (NYSE:DHI) because it is trading within an ascending triangle formation. As many of you know, the ascending triangle is constructed by a series of increasing troughs that fail to break through an identified price barrier. The clearly marked levels of support and resistance make this pattern is a favorite amongst many short-term traders.

A price move above the resistance is used to suggest that the bulls are in control of the direction and it is often followed by a quick move higher. As you can see from the chart below, a rise above $18 would likely trigger a wave of buy orders. We'd expect many traders to set their short-term target prices near the 161.8% Fibonacci extension level, which is near $23.



You May Also Like

Related Analysis
  1. Chart Advisor

    Profit From Holiday Spending With This ETF

  2. Chart Advisor

    Cocoa Prices Setting Up For A Move Lower

  3. Chart Advisor

    How To Trade The Biggest U.S. Companies In 2015

  4. Chart Advisor

    'Tis The Season For Food And Beverage Stocks

  5. Chart Advisor

    Commodities Set Up For A Continued Move Lower

Trading Center