AI Trading Robot Generates 9.70% Profit for DHI in Previous Week
The recent success of the Swing Trader, Long Only ($6.2K per position) AI trading robot using MACD and RSI strategy for real estate stocks is a testament to the power of technical analysis (TA) in generating profitable trades. Specifically, this robot was able to generate a 9.70% gain for DHI over the course of the previous week, highlighting the effectiveness of its trading strategy.
Upon further analysis, it appears that DHI moved above its 50-day moving average on April 10, 2023, indicating a change from a downward trend to an upward trend. This is a key technical indicator that is widely used by traders and investors to determine the overall trend of a stock. In fact, in 26 of 33 similar past instances, the stock price increased further within the following month. This means that the odds of a continued upward trend for DHI are 79%.
It's important to note that technical analysis alone should not be the sole factor used in making investment decisions. It should be used in conjunction with fundamental analysis and market research to fully evaluate a company's financial health, industry trends, and overall market conditions.
In this case, the Swing Trader, Long Only ($6.2K per position) AI trading robot was able to leverage its technical analysis capabilities to identify a potential upward trend in DHI and execute profitable trades accordingly. It's a strong reminder of the potential benefits of incorporating technical analysis into one's trading strategy, especially when combined with other forms of analysis.
DHI in upward trend: price may ascend as a result of having broken its lower Bollinger Band on August 17, 2023
DHI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 27 cases where DHI's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 54 cases where DHI's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DHI advanced for three days, in of 323 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 12, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on DHI as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DHI turned negative on September 13, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
DHI moved below its 50-day moving average on August 17, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DHI crossed bearishly below the 50-day moving average on August 21, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DHI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for DHI entered a downward trend on September 20, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 62, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DHI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.768) is normal, around the industry mean (5.787). P/E Ratio (8.058) is within average values for comparable stocks, (83.155). Projected Growth (PEG Ratio) (0.643) is also within normal values, averaging (1.581). DHI has a moderately low Dividend Yield (0.009) as compared to the industry average of (0.043). P/S Ratio (1.132) is also within normal values, averaging (71.814).
Notable companies
Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a company which engages in construction and sale of single family homes
Industry Homebuilding
DHI and
Correlation & Price change
A.I.dvisor indicates that over the last year, DHI has been closely correlated with LEN. These tickers have moved in lockstep 93% of the time. This A.I.-generated data suggests there is a high statistical probability that if DHI jumps, then LEN could also see price increases.