On CNBC's "Fast Money," Ari Wald of Oppenheimer spoke about opportunities in the housing space.
He sees enough positives for iShares Dow Jones US Home Const. (BATS: ITB) to buy it as a trade, with a protective stop at $41 support. He said that it is trading above its 200-day moving average, but the break out is not yet conclusive.
D. R. Horton Inc (NYSE: DHI) is a 14% weighting in the ETF and it's attempting to break above its 15-year resistance, explained Wald. He expects it to resume higher and pull the group with it.
He also likes Home Depot Inc (NYSE: HD), which he sees as a derivative play on the housing sector. Wald said the stock is consolidating and it has formed a bullish pennant pattern. He explained this is typically a continuation pattern that resumes in the direction of a trend. For him, Home Depot's trend is higher and he expects the stock to continue to move in that direction.
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