PHM broke out of the 28-day falling trendline (from 30/31 Aug/20 Sep highs) on the heels of a bull MACD cross. The bullish RSI divergence (from 4.09/3.29 lows shown on chart) suggests further upside from current levels. While the 3.86 low (07 Oct) holds, there is scope for an up-leg towards the recent range resistance at 5.16 (Resistance 1). An upside break there would allow bulls to seek 6.31 (Resistance 2) ahead of 7.42 (Resistance 3).
However, a clean loss of 3.86 would negate and re-open the key 3.29 support (Support 1) for a potential retest. A breakdown there would risk a deeper setback to new lows.
Trading Indication:
Short-term (or Intraday): Buy at 3.95 or lower;
Target at 5.16 and higher;
Stop Loss at 3.85 (2.5%)
Long-term: Possibly sell higher
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