D R Horton Rises 3.58% on Bullish Technicals Nearing Key 129.60 Resistance

D.R. Horton (DHI) rose 3.58% to close at $128.65 on June 23, 2025, marking three consecutive days of gains with a cumulative increase of 7.28% over the period. The stock traded between an intraday low of $122.83 and a high of $128.90, with volume reaching 3.47 million shares.
Candlestick Theory
Recent price action shows a bullish reversal pattern. The June 17th session formed a long-legged doji ($119.92 close after a $119.54–$126.33 range) signaling indecision after a sharp drop. This was followed by three white soldiers—consecutive bullish candles—culminating in the June 23rd rally that closed near its high, confirming upward momentum. Key resistance is established near the May peak of $131.13, while immediate support rests at $124.20 (June 20 low), with stronger support at the June 17 low of $119.54.
Moving Average Theory
The 50-day moving average (MA) currently at $122.30 holds as dynamic support, while the 100-day MA at $126.70 and 200-day MA at $124.80 converge beneath the price, reflecting a bullish infrastructure. The current price trading above all three MAs confirms a sustained uptrend. Notably, the 50-day MA crossed above the 200-day MA in early March, forming a "golden cross" that has underpinned the broader advance. Sustained trading above the 50-day MA suggests continued bullish bias.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bullish crossover with the signal line in positive territory, indicating strengthening momentum. This aligns with KDJ readings: the %K line (89) remains above the %D line (84) but approaches overbought levels. While both oscillators support upward continuation, the KDJ’s proximity to overbought territory warrants monitoring for potential short-term exhaustion, particularly if the %K line crosses below %D.
Bollinger Bands
Price recently rebounded from the lower band ($119.54 on June 17) and now tests the upper band near $128.90, suggesting renewed bullish pressure. Bandwidth contracted sharply in mid-June—indicating low volatility—before expanding during the recent rally. Sustained trading near the upper band could signal an overextended move, though expanding bands support trend continuation. A close above $129.00 would confirm breakout strength.
Volume-Price Relationship
Volume trends validate recent gains: the 7.28% three-day advance occurred on rising volume, peaking at 5.34 million shares on June 20. The June 23 rally on moderate volume (3.47 million shares) lacked the climactic surge typical of exhaustion moves, supporting sustainability. However, the June 4th surge to $123.53 on 3.72 million shares established a high-volume node that now serves as major support, while the April 29 decline to $124.75 on thin volume (1.93 million) highlights weak downside conviction.
Relative Strength Index (RSI)
The 14-day RSI currently reads 65, up from 42 during the June 17 low but not yet overbought (>70). This reflects balanced momentum without immediate overheating concerns. Prior overbought peaks (RSI >70 in February and April) coincided with short-term reversals, but the current position allows room for further upside. Bearish divergence would only materialize if prices make new highs while RSI fails to exceed its prior peak of 72.
Fibonacci Retracement
Using the swing low of $135.56 (July 5, 2024) and high of $194.56 (October 18, 2024), key retracement levels are identified. The recent recovery from the June low of $119.54 breached the 61.8% level ($158.60) decisively but now approaches the 38.2% resistance at $129.60—aligning with the May high of $131.13. A sustained move above $129.60 would signal a potential full retracement toward the $172–$175 zone (0% level). The 50% level at $149.00 offers intermediate resistance.
Confluence and Divergence
Significant confluence exists at $124–$126, where the 100-day MA, volume-weighted support, and swing low from June 16 converge. This zone should provide robust downside defense. Divergence is noted between RSI’s non-overbought reading and KDJ’s near-overbought position, reflecting mixed momentum signals. However, MACD and price/volume alignment favor continuation. A decisive break above $131.13 with expanded volume would confirm bullish resolution, while failure at $129.60 may trigger consolidation near Fibonacci resistance. Overall technical structure leans bullish with supportive indicator alignment, though short-term resistance tests are likely.