Market Overview

3 Charts Forecasting Downside In D.R. Horton


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. 


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. 


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. 


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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