Meritage Homes' 15min chart shows RSI oversold and KDJ golden cross.

Based on the 15-minute chart of Meritage Homes, a technical indicator of Relative Strength Index (RSI) has reached an oversold level, while the KDJ (KST Divergence Index) has formed a golden cross at 13:30 on October 6, 2025. This suggests that the stock price has experienced a significant decline and fallen below its fundamental support level, leading to a shift in momentum towards the upside. As a result, there is potential for the stock price to continue increasing in the near term.

Based on recent technical indicators, Meritage Homes (MTH) appears to be at an inflection point, with potential for upward price movement. The Relative Strength Index (RSI) has reached an oversold level, indicating a significant decline in the stock price, while the KDJ (KST Divergence Index) has formed a golden cross at 13:30 on October 6, 2025. These indicators suggest a shift in momentum towards the upside, offering investors an opportunity to consider Meritage Homes as a potential investment.

The RSI, a momentum oscillator that measures the speed and change of price movements, reached an oversold level, signaling that the stock has fallen below its fundamental support level. This often indicates a buying opportunity, as the stock price may rebound from the oversold condition. The golden cross formation of the KDJ, which is a signal used to identify potential trend changes, further supports the idea that Meritage Homes is poised for a price increase.

Meritage Homes has been under scrutiny due to the recent shifts in the housing market and investor sentiment. Despite a slight dip in share price over the year, the company has shown resilience with positive long-term total shareholder returns. Analysts have highlighted the company's ability to adapt to evolving economic conditions and its potential for future earnings growth, particularly in key regions Meritage Homes (MTH): Exploring Valuation as Investor Attention Shifts in the Homebuilding Sector^[2].

Investors must weigh the risks associated with Meritage Homes, such as affordability challenges and potential drops in buyer confidence, which could impact the company's growth outlook. However, the technical indicators suggest that the stock may be undervalued, presenting a compelling investment case for those looking for opportunities in the homebuilding sector.