Homebuilder Building Up

The common wisdom is the rising interest rates from the anticipated FED tapering will cause a slow down to the housing recovery. This slow down will hamper the homebuilders’ earning prospects. But in defying the obvious, here is SPF, a homebuilder that appears to be setting up for a possible move to its 52 week high.

SPF broke the multi-year resistance near the low 7 level and made a move toward higher prices before it came back to retest the breakout baseline.



After a successful retest of the resistance turned into support, the price broke above the pull back declining trend line.



Now it is making an attempt to break above the pivot level of 8.39 and move toward the previous 52 week high near 10.



For the more aggressive traders, the intraday chart show some potential levels for initiating partial swing long position and a few possibilities for potential stop.



Disclosure: Long SPF