Homebuilders have struggled lately as interest rates rose, but the longer-term prospects remain favorable. Today’s chart considers the pullback in DR Horton, the biggest name in the space.
DHI hit a new all-time high of $84.41 on February 11 and pulled back. It’s now bouncing, which may create opportunities for buyers.
Notice the high basing pattern between about $65 and $80. This consolidation was important because it established new support above the previous high from February 2020.