This is a monthly chart from Chris Kimble:
Source: Kimble Charting Solutions
XHB is right at a strong support level, which would be important to hold if someone is considering a long position in this ETF.
Disclosure: We have no positions in XHB.
This is an interesting chart from Chris Kimble:
I am not entirely convinced that the US Homebuilding industry should plunge based on the retreat of lumber futures, but it is worth keeping an eye on this important commodity.
Disclosure: We are long ITB, but have no positions in lumber.
It seems that the slight EPS miss by Toll Brothers on Tuesday caused ITB to head lower to its support line, which held it in November. Today’s price action is strengthening this support line, as ITB seems to be bouncing from this support at the 42 level:
The same can be said about the relative strength line. This is quite bullish in the short-term, if it holds, the price might want to fill the gap that was left between Monday’s and Tuesday’s candles.
A similar price action can be observed on the chart of XHB, although it didn’t fall to its support line: