TRI Pointe Homes, Inc. designs, constructs, and sells single-family homes and condominiums. It operates through the Homebuilding and Financial Services segments.
Take a look at the 3-month chart of Tri Pointe (NYSE: TPH) below with the added notations:
Chart of TPH provided by TradingView
Since its beginning of the year peak, TPH seems to have formed a clear, trend line of resistance (yellow). The line of resistance is currently sitting around $17.50, and a break above that line might lead to higher prices, overall, for the stock.
The Tale of the Tape: TPH has a down trending resistance. A break above that resistance could result in higher prices for the stock, thus a long trade could be made with a protective stop set below the entry price.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Christian Tharp, CMT