PulteGroup Rises 3.39% to $116.75 as Technical Indicators Signal Bullish Rebound

Candlestick Theory
PulteGroup's most recent session shows a bullish candlestick with a 3.39% gain, closing at $116.75 after trading between $114.43 and $117.38. This follows a hammer pattern on July 30 (low: $112.41, close: $113.36), signaling potential reversal after a downtrend. Key resistance is evident near $121.63 (July 22 high), while support holds at $112.41–$112.92 (July 30–31 lows). A bearish engulfing pattern on July 24 (high: $119.14, close: $116.03) previously confirmed selling pressure, but the current rebound suggests renewed buyer interest at lower levels.
Moving Average Theory
The 50-day moving average (∼$112.80) and 200-day MA (∼$108.50) both slope upward, indicating an entrenched long-term uptrend. The 100-day MA (∼$110.60) converges with the 50-day MA, reinforcing $110–$113 as a critical support zone. Price action remains above all key MAs after the August 1 close at $116.75, supporting a bullish bias. However, the 50-day/100-day convergence hints at potential consolidation if near-term volatility persists.
MACD & KDJ Indicators
MACD (12,26,9) shows bullish momentum, with the histogram expanding positively since July 30 after a brief bearish crossover. KDJ (9,3,3) exhibits an overbought signal, with the %K line (78) crossing above %D (75) and J-line (84) nearing 90. This confluence suggests strong upward momentum but flags overheating risks. Notably, the July 22–24 downturn saw bearish MACD divergence as prices peaked, signaling the subsequent correction.
Bollinger Bands
Bollinger Bands (20-day, 2σ) contracted sharply in late July (bandwidth: ∼4.5 points), preceding the August 1 volatility expansion. Price closed near the upper band ($117.60), indicating strong bullish momentum. The July 30 low ($112.41) rebounded precisely off the lower band, validating it as dynamic support. Continued upper-band proximity may trigger short-term profit-taking.
Volume-Price Relationship
Volume surged to 5.15 million shares on July 22 during an 11.52% rally, confirming bullish conviction. Subsequent pullbacks occurred on diminishing volume (e.g., 1.93 million shares on July 31), indicating weak selling pressure. The August 1 rebound saw volume increase to 2.03 million shares, supporting sustainability. However, volume remains below July 22’s spike, warranting vigilance for confirming follow-through buying.
Relative Strength Index (RSI)
The 14-day RSI (62) exited oversold territory (<45 on July 30) and now approaches neutral. Current readings lack overbought signals (RSI <70), leaving room for upside. Bullish divergence emerged in late July as RSI trended higher while prices tested $112.41–$112.92 support, foreshadowing the August 1 rebound. RSI’s trajectory aligns with recovering momentum but does not yet indicate exhaustion.
Fibonacci Retracement
Applying Fibonacci to the swing low of $93.11 (April 21) and high of $121.63 (July 22):
- 38.2% retracement at $110.50 aligned with July 30–31 lows ($112.41–$112.92), acting as robust support.
- 23.6% level at $116.60 nearly matches the August 1 close ($116.75). A decisive break above targets the 0% extension ($121.63).
- Confluence exists at $113.80 (50% retracement), where the 100-day MA and Bollinger Band mid-line converge.
Confluence and Divergence Insights
Confluent bullish signals include: August 1’s volume-supported breakout above Fibonacci 23.6%, MACD momentum shift, and RSI divergence preceding the rebound. Key divergence occurred in late July when price broke below the 50-day MA while KDJ remained oversold, highlighting temporary bearish pressure. The $110–$113 zone (Fibonacci 38.2%–50%/MA cluster) now serves as a high-probability support area. Short-term caution is warranted due to Bollinger Band expansion and KDJ overbought readings, but the MA alignment and volume profile favor upside continuation toward $121.63 resistance.