The New Home Company Inc. (NWHM)

The New Home stock forecast: buy or sell

The New Home stock outlook

  • The New Home closed yesterday at $3.78 (-1.82%) prior to reporting financial results at
  • The stock is configuring an uptrend pattern since late March, when it bottomed at $0.94. This uptrend marked a 302.13% gain
  • On July 30, The New Home posted its Q2 financial report
  • The New Home Company Inc. designs, constructs, and sells homes. The company operates through three segments: Arizona Homebuilding, California Homebuilding, and Fee Building.
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Please read:
The thoughts written in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this report does not have an understanding of the specific scenarios of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for informational purposes only

The New Home stock chart overview

Should I buy The New Home stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is NWHM stock a buy?

Currently, The New Home stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean NWHM will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell The New Home stock?

"To sell or not to sell", if you are holding The New Home shares?. Similarly to when we have to buy shares, choosing when is appropiate to sell is not a capricious decision, and we must follow our own trading strategy. When selling, as well as buying, detailed strategies are very easy to use but are only applicable for selling stocks in your porfolio, not for selling short NWHM stock

A golden rule is that you should not mantain a trade that results in greater losses than those expected by the time of purchase. The moment to sell shares always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell The New Home stock?

In the current situation of The New Home there is not any eligible sell setup, so The New Home stock holders with operations in green can keep their positions

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Analysts' recommendations to buy or sell The New Home stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days we couldn't find any rating for The New Home

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Technical analysis

Since in late March, The New Home has been drawing an uptrend that by now marked a gorgeous 302.13%. The price action shows rising highs and lows, and along the way gave very few buy points for those who wanted to invest. Latest pullback was in late June, when price bounced at $2.86. Like in all uptrends, price needs to rest and currently price is consolidating the gains in a range between $4.91 and $2.86

SMAs overview

Moving averages are simple indicators for investors to measure market momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Market investors use supports and resistances as a way to identify price points on a chart that may act as obstacles, containing the price of a stock to move in certain direction. A support level is a level where the price tends to find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it is likely to continue falling until finding another support level. On the other side, resistance levels are where the price may find a curb as it moves up. Likewise, the price is more likely to "rebound" at this level, and if it finally crosses this level, the price will rally easily until it approaches the next resistance

The current resistance levels are:

  • R1: $3.96 (4.76% above)
  • R2: $3.97 (5.03% above)
  • R3: $3.98 (5.29% above)
  • The current support levels are:

  • S1: $3.62 (-4.23% below)
  • S2: $3.57 (-5.56% below)
  • S3: $3.46 (-8.47% below)
  • Bollinger bands

    The so-called Bollinger bands are a widely known practice that was created by John Bollinger. Essentially, the Bollinger Bands are lines that move around a moving averagediffering in distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to chart the current and past weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by traders

    The RSI dropped below the overbought level of 70 on July 21 after just crossing to the overbough zone for just one day (weak signal). The RSI value yesterday was 48.86. Since that level was lost, The New Home price sank a 15.25%

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    Earnings and financials

    The New Home Company Inc. (NWHM) released second-quarter earnings of $0.00 per share, matching the Wall St consensus estimate of $0.00 per share. Turnover was $99.0 million compared to $124.9 million estimated by market consensus.

    In comparing, the EPS for the same quarter last year was $0.06, so current EPS is a decrease of -100%. Revenue collapsed a -39.19% on an annualized basis in the Q2, from $162.7M to $99.0M last quarter.

    The New Home is posting quarterly financial report. Earnings reporting day has a more than usual risk for stock traders as the data provided can gap up or down the price with exceptionally low liquidity and not respecting your buy/stop-loss orders. You can probably uncover more information about the earnings call and the earnings reports on the Investor Relations section of its website: http://www.nwhm.com.

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