PulteGroup Rises 3.33% as Technical Indicators Signal Continued Bullish Momentum

PulteGroup (PHM) rose 3.33% in the latest session, marking its third consecutive day of gains with a cumulative 3-day increase of 6.20%. This upward momentum warrants technical examination across multiple frameworks.
Candlestick Theory
Recent price action shows a bullish reversal pattern emerging near the $97.50 psychological support level, established during the May 29 and June 2 troughs. The current three-day rally features ascending candles with higher lows, suggesting increasing buyer conviction. Immediate resistance appears at the $105.04 swing high from June 23, while robust support remains at the $97.50-$98.50 zone validated by multiple tests. A decisive close above $105.04 could signal continuation.
Moving Average Theory
The 50-day moving average (MA) has remained above the 100-day MA since mid-May, confirming the intermediate bullish trend. The June 23 close at $104.85 sits above both MAs, with the 50-day MA ($101.20) providing dynamic support. Notably, the price recently rebounded precisely from the 50-day MA during the June 17 pullback. The absence of a 200-day MA calculation due to limited dataset duration suggests focusing on the 50/100-day relationship, which currently exhibits positive alignment.
MACD & KDJ Indicators
The MACD histogram has turned positive after a June 17 bullish crossover, with momentum accelerating during the three-day rally. Meanwhile, the KDJ oscillator shows %K (82) and %J (94) penetrating overbought territory, though %D (76) maintains upward slope. This divergence warrants caution - while momentum is strong, the stretched KDJ readings suggest near-term consolidation risk. The MACD's sustained positive trajectory currently outweighs KDJ's overbought signal.
Bollinger Bands
Bollinger Band width expanded 18% during the recent rally, indicating increasing volatility. Price now trades near the upper band ($106.20), which aligns with the June 23 high of $105.04. Historical reactions at this band include the May 21 and June 11 rejections. The midline at $100.60 now serves as dynamic support, with any retracement likely finding buyers near the $100.60-$101.50 confluence area.
Volume-Price Relationship
Volume during the three-day rally (1.54M, 3.04M, 1.53M shares) exceeds the 20-day average (1.86M), confirming accumulation. Notably, the June 20 surge occurred on the highest volume in four weeks, validating the breakout. The absence of volume divergence reinforces the trend's sustainability, though the slightly reduced volume on June 23 suggests near-term exhaustion may precede consolidation.
Relative Strength Index (RSI)
The 14-day RSI reads 68, approaching overbought territory. Historically, reversals occurred at similar levels in early June (RSI 72) and late May (RSI 70). While not yet signaling reversal, this warns against chasing the rally. It's noteworthy that during the April-May decline, oversold readings below 30 preceded rallies, increasing the indicator's reliability as a contrarian signal at extremes.
Fibonacci Retracement
Applying Fibonacci levels to the March 31 peak ($102.80) and the April 22 trough ($94.93) reveals key levels: 38.2% retracement at $99.85 provided support in early May, while the 61.8% level at $101.25 acted as resistance in mid-June. The current price hovers near the 78.6% retracement at $104.50, which aligns with the June 23 high. A decisive break above this level would open path toward the 100% extension at $107.80.
Confluence & Divergence
Notable confluence exists at $100.50-$101.50 (50-day MA, Fibonacci 61.8%, and Bollinger mid-line). This zone’s significance is amplified by multiple June tests. The KDJ overbought condition diverges slightly from MACD’s continued bullish momentum, though both oscillators agree on underlying strength. Volume confirms bullish momentum without divergence. Primary concern remains the RSI nearing overbought levels as price approaches major resistance, suggesting limited upside potential without consolidation.