Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Home Construction ETF Breaks and a Home Builder Sets up for Further Downside

by October 18, 2023
October 18, 2023
Home Construction ETF Breaks and a Home Builder Sets up for Further Downside

The Home Construction ETF (ITB) led the market the first seven months of the year, but fell on hard times the last two months and reversed its long-term uptrend. Today’s report/video will look at the trend reversal in ITB using the RSI Trend Range indicator. We will then highlight a homebuilder with a confirmed Double Top and put forth a downside target. This bearish outlook jibes with our broad market analysis at Chart Trader.

The first chart shows ITB with a head-and-shoulder top forming from late June to September. ITB broke support with a gap down on September 21st to confirm this pattern. The ETF continued lower into October and the big trend is down. Note that SPY is up around 2% in October, but ITB is down 2.79% and showing relative weakness.

RSI(65,5) confirms the trend change with a move below 49 on September 27th. This indicator is the 5-day SMA of 65-day RSI. Long-term momentum turns bullish (uptrend) with a move above 51 and stays bullish until a move below 49. The recent move below 49 confirms the trend reversal on the chart and I am bearish on ITB. This indicator is part of the TIP Indictor Edge Plugin for StockCharts ACP.

The next chart shows Toll Brothers (TOL) with a confirmed Double Top. The stock formed two highs in the 84 area (red arcs) and broke support at 75 on September 21st. TOL bounced in early October, but notice how broken support turned into first resistance (red line). The support break is holding and I view this as bearish. The blue shading marks the downside target in the 60 area. A close above 75 would warrant a re-evaluation.

This week at Chart Trader we focused on SPY and QQQ as they bounce within bigger downtrends. Both are near resistance/reversal zones and we marked the key levels to watch going forward. Chart Trader also features several trading ideas for ETFs and stocks. Each report includes a video. Click here to take a trial.

//////////////////////////////////////////////////

0
FacebookTwitterGoogle +Pinterest
previous post
United Nations to vote on resolution condemning Hamas attack and all violence against civilians
next post
A Crackdown on Crypto Won’t Stop Hamas

You may also like

Strength Off the Lows, But Concerns Remain

August 15, 2024

Stock Indexes Continue Winning Streak: Growth Stocks Still...

November 9, 2023

Which Magnificent 7 Stock Would You Pick for...

March 30, 2024

Here Were The Top 10 Performing Industry Groups...

January 3, 2023

Week Ahead: NIFTY Opens Up Some More Room...

July 30, 2022

How To Profit From Bullish Gap-Down Reversals

March 16, 2024

NVDA & Mag 7 Breaking Down; Russell 2000...

July 11, 2024

SBUX Stock Price Skyrockets: Is Now the Time...

August 13, 2024

Week Ahead: Positive Start To Nifty Expected; Muted...

January 7, 2023

Fasten Your Seatbelts: Earnings Season in the Spotlight

July 7, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Inside Biden confidante Steve Ricchetti’s ‘combative’ eight-hour grilling in House Oversight cover-up probe

      July 31, 2025
    • Bernie Sanders to force Senate vote on blocking arms sales to Israel

      July 30, 2025
    • New tech-focused MAHA initiatives will usher in ‘new era of convenience,’ improve health outcomes, Trump says

      July 30, 2025
    • Former Intel CEO Calls for a US Sovereign Wealth Fund

      July 30, 2025
    • A Response to Misinformation Criticism

      July 30, 2025
    • The Future of Enterprise Connectivity: How 5G is Transforming Business Broadband in 2025

      July 30, 2025

    Categories

    • Business (8,623)
    • Investing (2,162)
    • Politics (16,253)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved