Technical Analysis

Based on the provided data, here is a comprehensive technical analysis of DHI stock:

Technical Analysis of DHI

Recent Price Movement

• Latest Close Price (2024-03-01): $152.39
• Previous Close Price (2024-02-29): $148.88
• Price Change: +2.36%
• Volume: 1,988,600 (lower than the previous day, indicating reduced trading activity).

Key Technical Indicators

1. Relative Strength Index (RSI):

   • RSI (14): 39.55 (indicates the stock is approaching oversold territory but not yet oversold).
   • RSI below 50 suggests bearish momentum.

2. Moving Averages:

   • Short-Term (SMA 5): $128.06
   • Medium-Term (SMA 20): $131.17
   • Long-Term (SMA 60): $141.26
   • The stock price is trading above its short-term and medium-term moving averages, indicating a potential short-term bullish trend.

3. MACD (12,26,9):

   • MACD Line: -3.86
   • Signal Line: -4.02
   • Histogram: +0.16
   • The MACD is negative but showing a slight bullish crossover, which could indicate a potential reversal.

4. Stochastic Oscillator (14,3,3):

   • %K: 25.57
   • %D: 27.68
   • The oscillator is in the oversold zone, suggesting a possible rebound.

5. Bollinger Bands (20,3):

   • Lower Band: $116.77
   • Middle Band: $131.17
   • Upper Band: $145.56
   • The stock is trading near the upper band, indicating it may face resistance.

Support and Resistance Levels

• Support Levels:

  • Fibonacci S1: $125.13
  • Fibonacci S2: $123.02

• Resistance Levels:

  • Fibonacci R1: $131.94
  • Fibonacci R2: $134.05

Trend Analysis

• The stock has shown a strong recovery from its February lows, with a recent breakout above $150. However, the RSI and MACD suggest caution as the momentum is not strongly bullish.

Recommendation

• Action: Hold or Buy on Pullbacks
• Entry Point: Consider buying near $145 (support level) if the stock retraces.
• Exit Point: Target $160 (next resistance level based on SMA 200).
• Stop Loss: Set at $140 to limit downside risk.