Meritage Homes' 15-min chart shows RSI overbought, KDJ death cross.

Meritage Homes's 15-minute chart has triggered an RSI Overbought signal and a KDJ Death Cross at 09:45 on September 5, 2025. This indicates that the stock price has experienced a rapid increase and is now exceeding its fundamental support, suggesting a shift in momentum towards a downward trajectory and potential further price decreases.

Meritage Homes (MTH) stock experienced a significant 5.6% increase in the afternoon session on September 5, 2025, driven by expectations for a Federal Reserve interest rate cut. This cut fueled a drop in mortgage rates and Treasury yields, boosting the homebuilding sector. The shares closed the day at $81.51, up 6.2% from the previous close [1].

However, a closer look at the 15-minute chart reveals technical indicators that suggest a potential downward trend. At 09:45 on September 5, 2025, the Relative Strength Index (RSI) triggered an Overbought signal, indicating that the stock price has experienced a rapid increase and may be due for a correction. Additionally, the KDJ Death Cross at the same time suggests a shift in momentum towards a downward trajectory [2].

These signals are not uncommon in volatile stocks like Meritage Homes, which has had 16 moves greater than 5% over the last year. The stock's recent performance, including a 5.2% increase since the beginning of the year, has been driven by market sentiment around the Federal Reserve's interest rate policy and the broader housing sector's strength [1].

Investors should be cautious, as the current price of $79.93 per share is still 25.2% below the 52-week high of $106.85 from September 2024. Those who bought $1,000 worth of Meritage Homes' shares 5 years ago would now be looking at an investment worth $1,713 [1].

While the technical indicators suggest a potential downward trend, it is essential to consider both fundamental and technical analysis. The housing sector's strength, as indicated by recent data showing record high median single-family home prices, could continue to support Meritage Homes' performance [1].

References:
[1] https://www.tradingview.com/news/stockstory:2035020c1094b:0-why-meritage-homes-mth-stock-is-up-today/
[2] Provided chart data and technical analysis