PHM has pulled back to a historically bullish trendline
Pultegroup Inc (NYSE:PHM) stock has moved choppily lower since its mid-August record highs, though lately it appears to have found a floor at the $70 level. A bounce could be on the way, too, as shares are within one standard deviation of a historically bullish trendline.
Per Schaeffer’s Senior Quantitative Analyst Rocky White, PHM has pulled back to its 160-day moving average for the third time in the past three years. Pultegroup stock was higher one month after each of the past three signals, averaging a 7.6% pop.
Plus, though short interest has been unwinding, it still represents 4.6% of the stock’s available float. It would take over four days for shorts to cover their bets, at PHM’s average pace of trading.