An Overlooked Housing Stock

• Posted by Greg Harmon
• on July 7th, 2016

The housing sector has been firing on all cylinders. Everything from Lumber to home improvement stores, to suppliers to mortgage REIT’s have been benefiting. Including the Home builders like DR Horton, Lennar and KB Homes are in the mix. But there is one home builder that gets overlooked by many. And that can be a good thing. CalAtlantic Group ($CAA) builds single family homes, like the one above in Dallas, in the North, Southeast, Southwest and West.

Its stock price chart below shows a steady rise off of a bottom with the market in February. A series of higher lows and higher highs. An uptrend. As it approaches the bump in late December, it has been consolidating. A two stage pullback in June reacquainted it with the 200 day SMA and then it started back higher. Thursday it is testing that high again.

This stock has a bullish and rising RSI and a MACD that is just crossing up to support more upside. A push through the resistance at 38.40 carries a target to 42.40, just below the December high. Like many housing stocks it also has high short interest, at almost 12%. And it does not have a following on Stocktwits. In fact the ticker was not even there until I wrote this! Have you overlooked this $4 billion builder?

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