enamulahsan

Industry was very strong and now its weak and decelerating.1.jpg  
Overvalued stock and current EPS are negative. Real time all stock in this industry was down.

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Weekly and Daily bearish candle and in daily chart memory support broken. Only there was a watermark on the daily chart.


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0
Sagar
Here is a clearer chart for $CVCO (stock in the Homebuilding industry) along with the At A Glance chart for the Homebuilding ETF $XHB. And my comments on the stock CVCO.

CVCO happens to the weakest in terms of fundamentals among its peer stocks as analyzed using CUE Vital (snapshot not attached here). The stock is overvalued with negative earnings growth as Enamul already shared above.

It also has one of the weakest technicals on CUE charts - breaking below daily Memory trendline support. If fact, none of the other home builders are giving a short setup (I analyzed them using CUE At A Glance to check that out).

If you look at XHB, the ETF, that is moving sideways for five to six weeks. XHB is inside support and resistance Memory in daily. That probably explains why not many homebuilders are giving CUE short setup though relatively speaking the industry is weak.

The market is also moving sideways. The market has a tremendous effect on trade results.

CVCO is the weakest of peer stocks in a weak industry. Will you short it even if the market is rangebound? If you do, you may know that is a more risky proposition. The rest is a trader's good hands.

6 0 Technical.jpg  6 1 Technical.jpg 
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enamulahsan
Thanks for the detailed explanation. I think you mentioned in our previous catch up that once most of the stocks is weak  then there is a better possibility that industry will go down if market is bearish. So wait patiently for a clear market direction.
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