Unum Capital: US Homebuilders ETF

Unum Capital: US Homebuilders ETF

Dear Trader

Weak patches in the US home-builders market has evidently taken it’s toll on the share prices of the companies which operate in that sector. From it’s peak in January 2018, the S&P Homebuilder Select Industry Index has seen a decline of 32% with the underlying companies taking much more pain than is reflect at an index level.

Now, the price appears to be ready for a technical recovery and could spell an opportunity for investors and traders who prefer unloved and out of favour sectors.

One ETF that offers direct exposure to the sector is the SPDR Homebuilders ETF (XHB).

XHB Fund Description

XHB tracks a broad-based, equal-weighted index of US companies involved in the homebuilding industry.

On the chart, the price has formed an inverse head and shoulder bottom, signaling the potential for further advance.
At a price of a $35.74, traders could look to take a buy/long position in anticipation of an upside break. The first price target is $38.65, with potential to test $40.82.
Please chat to the Unum Capital Trading Desk to take advantage of any trading opportunities.
All the best,
Lester Davids
Unum Trading Desk Analyst
Tel: 011 384 2923

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