Shares of home builders PulteGroup (NYSE: P HM) climbed the charts this month, after consolidating above the $70 mark in October. Today, the stock has hit a new all-time high of $89. 16, and there are reasons for that. those peaks will be bigger, if the afterlife sets a precedent.
It sounded a bullish signal for PHM as its all-time highs were reached amid low volatility, which has been a traditionally bullish combination going forward. According to Schaeffer senior quantitative analyst Rocky White, there were eight other signals over the past five years when Pultegroup shares were trading within 2% of their 52-week high, while its Schaeffer Volatility Index (SVI) was in the 20th percentile of its yearly range. or lower, as was the case in the last session. Shares rose a month later after 63% of those signs, an average increase of 4. 4%.
Plus, though short interest has been unwinding, down 20.2% during the most recent two-week reporting period, the stock has still rallied, pointing to a solid technical foundation.
An unwinding of short-term options traders’ pessimism could also generate additional tailwinds. This is per PHM’s Schaeffer’s put/call open interest ratio (SOIR) of 1.50 that sits in the 75th percentile of readings from the past 12 months, suggesting a bearish bias amongst these traders.