Tagged the July low aka head & shoulders neckline perfectly & reversed today. Is it that easy? I've got the pink line below as the target if it plays out.
Looks like it is about to repeat something similar to the last drop to $101. I am watching and waiting for it to drop. I will not short it but I will buy back in when it bottoms. I suspect this stock will go to $175 to $200 range in 2014 and may pull back to $130 to $140 range soon.
jrothlander
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Well, it actually did break out today around 2:30PM. So I didn't jump ship... yet.
jrothlander
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I agree with you except on one point. It is right on the May 18th support and seems reasonable that it could reverse/bounce from here. That would align with the pattern we have been seeing for the last year with DHI. Plus, the company is widely profitable right now. I'm wondering if it is just retracing a bit and will reverse soon. The H&S suggests not. If it drops anymore today, I'm going to jump ship and wait for it to drop $6 before looking to get back in. But I don't know, at that point it may fall as low as $90 or less. I feel like there's significant uncertainty with this one and I am about to jump ship if it doesn't reverse or breakout. I should have jumped ship a long time ago... and I really do not like that H&S setup. If it doesn't break out now, I am out. Or maybe I will short it. I'm just concerned about that, as what did Buffett see to make him pick up 6M shares at $120 or so? We know that DHI's goal is to push the stock to $200. Maybe in the long term Buffett agrees with that. But maybe not this year.