PulteGroup, Inc., through its subsidiaries, engages in homebuilding
and financial services businesses primarily in the United States. The
company's Homebuilding segment is involved in the acquisition and
development of land primarily for residential purposes within the United
States; and the construction of housing on such lands. This segment
offers various home designs, including single-family detached,
townhouses, condominiums, and duplexes under the Pulte Homes, Del Webb,
and Centex names. As of December 31, 2012, this segment had
approximately 670 active communities. Its Financial Services segment
engages in mortgage banking and title operations. This segment arranges
financing through the origination of mortgage loans primarily for
homebuyers; sells such loans and related servicing rights; and provides
title insurance policies as an agent, as well as examination and closing
services to homebuyers.
To review Pulte's stock, please take a look at the 1-year chart of PHM (PulteGroup, Inc.) below with my added notations:
The $18 level has clearly been important to PHM, not only as support
from February through July, but also as recent resistance (red). In
addition, the stock has formed a trendline of support (green) starting
back in August. These two levels combined had PHM stuck within a common
chart pattern known as an ascending triangle. At some point, the stock
had to break through one of those two levels, and as you can see, it was
the $18 resistance that finally broke.
The Tale of the Tape: PHM broke the resistance of
its ascending triangle. A long trade could be made on a pullback to $18.
A break back below the $18 level would set up a possible short trade
and negate the forecast for a move higher.
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