Oppenheimer Weighs In On ITB, DR Horton And Home Depot

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.