DHI, UAA updates 04/02

DHI: Keeps holding its rising 200d SMA like a champ, with a nice bullish candle today. There’s been a lot of call buying over the past month and I think this will be an excellent candidate to have for major-5. The TIs on the daily chart are all pointing up and on a buy, wanting to see higher prices. A break back over the 50d SMA would be very constructive. Cont’d below.

DHI

Big picture wise, DHI is now in likely intermediate-v of major-3 of Primary III/C, which I expect to reach ~$55-57 before major-4 sets in. Since the 200d SMA is rising and has held this is a buy IMHO with an easy >20% upside potential. Note how the monthly money flow index was very overbought at the recent top, as was the monthly RSI5, meaning price will make a new ATH to set up negative divergence and an even larger decline (major-4). Until then, good times ahead imho.

DHI monthly

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UAA: has been toying with the 200d SMA for some time now, resulting in some whipsawing for those who play it (enter on close >200d, exit on close <200d; this will lead to small losses but often a few very big gains off setting all the small losses. Yes indeed, the win/loss ratio can be 2:10, as long as the 2 wins are huge 😉 ). That said, the stock today firmly broke above its 200d SMA as well as above the red downtrend line. The 50d SMA is turning back up and about to make a “golden cross” (move over the 200d SMA). There’s been call buying behind this stock and things look better and better imho. The daily chart is starting to look strong, is defying the bad looking indices and price from here can target $22-25 if not much higher considering a Cycle-2 low may have been struck (See monthly chart below).

UAA daily

On the monthly chart, as shown in an earlier update, we can see how price stalled at the 76.4% retrace of Cycle-1. Is Cycle-2 in? The monthly TIs are now all pointing back up, coming from deeply oversold, and the monthly MACD is about to give a buy signal. A move above the upper red downtrend line, now at $24 and next month at $22 would be a very good sign of a lot of good things to happen. If this will move in 5 cycle waves up, than price can ideally target $120.

UAA monthly