Desarrolladora Homex

Desarrolladora Homex (HXM), a vertically integrated home development company, engages in the development, construction and sale of affordable entry-level, middle-income and tourism housing in Mexico, as well as affordable entry-level housing in Brazil. This stock closed up 8.6% to $1.63 in Tuesday's trading session.

Tuesday's Range: $1.52-$1.67
52-Week Range: $1.08-$14.19
Tuesday's Volume: 719,000
Three-Month Average Volume: 630,031

From a technical perspective, HXM ripped sharply higher here right off some near-term support at $1.50 with above-average volume. This move is quickly pushing shares of HXM within range of triggering a major breakout trade. That trade will hit if HXM manages to take out Tuesday's high of $1.67 to $1.75 and then once it takes out more key overhead resistance levels at $1.84 to $1.89 with high volume.

Traders should now look for long-biased trades in HXM as long as it's trending above near-term support at $1.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 630,031 shares. If that breakout triggers soon, then HXM will set up to re-test or possibly take out its next major overhead resistance levels at $2 to its 200-day moving average at $2.51.

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