There has been a lot of banter among institutional investors lately about the homebuilders potentially bottoming.  While this may be the case based on the massive amounts or short interest and improvement of news flow it may not align with the longer-term macro issues facing the builders.  However it does not mean there can’t be a strong rally given the temporary reprieve of bad news flow and the aggressive short interest.  That said we examine RYL in this blog post with some technical work. 

As seen presently RYL is testing a down trend line in tact since the 2005 peaks. 

We remain technically Neutral on RYL shares pending the breakout of this downtrend, though we do recognize the chart set up as potentially bullish (waiting confirmation of the trend line break).

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