MTH – Head and Shoulders Complete

At the end of January, I mentioned that MTH and the Homebuilder stocks were showing signs of weakness. It sure looked as if MTH – Meritage Homes Corp. would break down out of a head and shoulders technical pattern. That would take it down to 35. Well, we’re there now.

TOL and RYL have found their respective 200 day moving averages. It’s time to watch for support here. These stocks need to consolidate, or bounce at this level. I’m watching the long side for a dead cat bounce.

Let the charts tell you when it’s time to take the trade.