I've had my eyes on the Homebuilders for a while. This USG Corp is beginning to look ripe for a short.
The Daily Chart shows that being in an uptrend since last October, USG failed to sustain the rally and has broken below all major MA including the very decisive 550 day MA (Black Line) The Moving Averages have been tightly compressed which typically indicates that a big explosive move is in the cards.
The Daily Chart shows that being in an uptrend since last October, USG failed to sustain the rally and has broken below all major MA including the very decisive 550 day MA (Black Line) The Moving Averages have been tightly compressed which typically indicates that a big explosive move is in the cards.
The Weekly Chart shows that USG found resistance at the 550 weekly MA, The 550 is a powerful indicator of trend on all timeframes and the fact that USG was not able to break above its 550w in this rockem sockem bull market should be a red flag to investors. We also discover that similar to YELP there exists a fast zone underneath USG. If price dips below the $26 level, things could get fast & loose to the downside!
I went short KBH last week. The chart looked very weak, and I have been waiting for an opportunity to short KBH since it got eviscerated on it's last earnings report. The rejection of the 50d & 200w MA seems like as good of an entry as any!
I think that Homebuilders are ripe for a pullback & these charts have been screaming short!
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