Trading Idea - Entry Levels for Pulte

Published on Wednesday, 25 August 2010 19:12 Written by Danny Miller

New York, August 25th (TradersHuddle.com) - Shares of Pulte Homes, Inc. (NYSE:PHM) are trading very close to calculated support at $7.70 with current price action closing at just $8.08 places the stock price near levels where traders will start paying attention.

Pulte Homes, Inc. (NYSE:PHM) constructs and develop residential and active adult communities. The Company also provides mortgage financing, title insurance, and other services to home buyers. Pulte has operations in various markets across the United States and Puerto Rico.

Pulte's current stock range is defined by current calculated support defined at $7.70 and by the resistance level at $8.50, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Pulte's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $8.50 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.