Positive divergences in MACD show waning downside momentum that can lead to a breakout. DR Horton (DHI) forged a lower low in early July, but MACD held above its June low for a positive divergence. Despite a lower low in the stock, downside momentum was fading. MACD's subsequent move above its signal line preceded a resistance breakout in DHI. Note: This is an educational post featuring a technical analysis technique.
