PulteGroup Rises 3.23% Extends Five Day Rally To 5.02% Gain

Introduction
PulteGroup (PHM) closed at $137.61, rising 3.23% and extending its winning streak to five consecutive sessions, gaining 5.02% over this period. This bullish momentum sets the stage for a multi-faceted technical evaluation using the specified framework.
Candlestick Theory
Recent price action displays a strong bullish sequence with five consecutive white candles, culminating in a long-bodied candle closing near the session high of $138.14. Key resistance is evident near $138 (tested twice in late 2024 and September 2025), while support emerges at $132.30, aligned with the August 2025 breakout point. A decisive close above $138.20 could signal continuation, whereas failure here may form a double-top pattern.
Moving Average Theory
The short-term trajectory is decisively bullish, with the current price ($137.61) trading well above the rising 50-day MA (~$125) and 100-day MA (~$118). Critically, the 50-day MA crossed above the 200-day MA in late 2024, confirming a long-term golden cross. The consistent trading above these key averages reinforces the established uptrend, with the 200-day MA ($110) acting as major structural support.
MACD & KDJ Indicators
MACD (12,26,9) exhibits a bullish configuration: the histogram is expanding positively above the signal line, confirming accelerating upside momentum. KDJ (9,3,3) shows the %K line at 88 and %D at 82, entering overbought territory (above 80). While this reflects strong short-term momentum, it suggests increased susceptibility to a pullback or consolidation, particularly if bearish divergence emerges.
Bollinger Bands
Price trades near the upper band (~$138), reflecting strong directional momentum. Band width remains moderate, indicating no extreme volatility compression often preceding significant breakouts. Sustained closes above the upper band would signal exceptional strength but risk a reversion toward the 20-period moving average (mid-band, ~$132.50). The bands' expansion supports the current trend’s validity.
Volume-Price Relationship
Recent gains show increasing volume (2.28 million shares vs. 2.04 million prior session), validating the bullish move. Notably, significant price advances (e.g., +5.55% on Aug 22, +5.38% on Aug 13) coincided with high volume spikes, affirming buyer conviction. This latest push to $138 on higher volume further supports upside momentum sustainability barring volume contraction on pullbacks.
Relative Strength Index (RSI)
RSI (14-period) is estimated at 68, nearing the overbought threshold (70) but not yet signaling exhaustion. The gradual ascent avoids extreme overextension seen in prior tops (e.g., RSI >75 in late 2024). This neutral-to-bullish RSI positioning allows room for further upside, though proximity to 70 warrants monitoring for potential bearish divergences if prices stall or reverse.
Fibonacci Retracement
Applying Fib levels to the major swing low (~$89.81 on Apr 11, 2025) and high ($149.47 on Oct 18, 2024), key retracement zones emerge. The 50% level ($119.64) acted as strong support during August 2025 consolidation. Current price trades above the 38.2% retracement ($128.40), which now serves as key support. Confluence exists around $130-$132 (38.2% Fib, prior resistance, and psychological support).
Confluence and Divergence
A notable confluence of bullish signals exists: price above all key MAs, volume confirmation of new highs, sustained MACD bullishness, and holding above the 38.2% Fib level ($128.40). However, a nascent divergence requires monitoring: KDJ overbought readings conflict with RSI near 70, potentially flagging short-term exhaustion risks despite strong structural momentum. Key bearish confirmation would require a decisive break below the $132.30 support zone, negating the immediate upside bias.