Market Overview

3 Charts Forecasting Downside In D.R. Horton

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The following stock has been highlighted by VantagePoint Software, an artificial intelligence platform that provides market forecasts 1-3 days in advance.

Shares of D.R. Horton (NYSE: DHI) closed down 1.12 percent on Thursday. According to VantagePoint Software, the weakness will continue for at least the next three trading days. 

Each of the 3-month, 1-day charts below forecasts impending downside for the stock. The blue line represents a predicted moving average, the black line represents a 10-day moving average, and the red-green bar at the bottom of the chart is a neural index that predicts whether the stock will close higher or lower in the next two days.

A crossover of those two lines represents a change in trend. An uptrend is shown by the blue line crossing above the black line, and a downtrend is shown by the black line crossing above the blue line.

Friday's Forecast

For Friday, VantagePoint forecasts DHI to trade between $41.86-$41.07. The software has forecasted 24-hour weakness every day since the trend reversed on June 13, and DHI has responded by falling 7 percent during that time. 

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Monday's Forecast

Notice how the two moving average lines have diverged further in this chart. That divergence indicates the downtrend has strengthened, and it will take a tremendous up day or two to bring the stock out of the current trend. 

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Tuesday's Forecast

This is the strongest confirmation that the stock is in for near-term weakness. The platform is predicting downside as far in advance as Tuesday, which confirms the weakness forecasted for Friday and Monday's sessions. 

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DHI closed down 1.12 percent on Thursday. 

VantagePoint is a content partner of Benzinga. For a free demo click here.

Posted-In: Short Ideas Technicals Previews Psychology Markets Movers Trading Ideas General

 

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