Wednesday, August 12, 2015

Meritage Homes Corp (NYSE: MTH)

Meritage Homes Corporation designs and builds single-family detached homes in Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee in the United States. The company operates through two segments, Homebuilding and Financial Services. It acquires and develops land; constructs, markets, and sells homes; and provides warranty and customer services. The company provides a range of homes for various homebuyers, including first-time, move-up, active adult, and luxury under the Meritage Homes, Phillips Builders, Legendary Communities, and Monterey Homes brands. It also offers title insurance and closing/settlement services for its homebuyers.
Take a look at the 1-year chart of Meritage (NYSE: MTH) below with the added notations:
MTH
MTH rallied strongly off of its $32, January low making its way all the way up to a $50 high in April. In addition, over the entire course of the past year the $42 price level (blue) has become very important to the stock. Not only was $42 a key resistance back in August, but that level has also been an important support since the end of February.

The Tale of the Tape: MTH has a key level at $42. A trader could enter a long position on at $42 with a stop placed under the level. However, if traders are bearish on MTH, a short trade could be made instead on a break below $42.

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