DR Horton stake cut by Pictet Asset Management: DHI remains under pressure

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DR Horton drops 3.79% to $149.72

Highlights

Pictet Asset Management cut its stake in D.R. Horton by 23.2% during the third quarter, reducing its holding to 550,382 shares.
Large institutional stake reductions can put pressure on near-term trading as increased liquidity may add to selling momentum.
Shares of D.R. Horton fell 3.79% to $149.72 with technical signals showing weak momentum and a 2 to 3 day expected range of $142.6 to $154.31.

Institutional selling accelerates as major holder trims stake sharply

Pictet Asset Management Holding SA reduced its stake in D.R. Horton by 23.2% during the third quarter, bringing its holding down to 550,382 shares, according to MarketBeat. The move by this major institutional holder may prompt caution among other investors, as large stake reductions can be interpreted as a signal of shifting confidence in the company. Increased liquidity from such disposals can weigh on short-term sentiment and add to selling momentum in the shares.

Intraday pressure persists as mixed momentum meets oversold conditions

On the technical front, DHI is trading below the MA-20 and MA-50 on the hourly chart, indicating pressure over short and medium timeframes. The stock holds above the MA-200 on the daily timeframe, while the Ichimoku Kijun at $155.2 defines immediate resistance. Momentum signals are mixed: MACD and the Awesome Oscillator are neutral, while ADX registers a sell bias. RSI is neutral, whereas both Stochastic RSI and CCI are oversold, reflecting selling exhaustion that is not yet confirmed by a reversal. Bull/Bear Power at –2.91 reinforces the dominance of sellers in the intraday session.

Rangebound outlook prevails as downside risk marginally dominates

Looking ahead, DHI is expected to trade within a range of $142.6 to $154.31 over the next 2–3 trading days, based on recent volatility. The probability of a downward move slightly outweighs an upward reversal, at 52% versus 48%. The base case scenario envisions continued consolidation inside this band. A break above $155.2 could ignite further upside, while a drop below $142.6 would open the door to additional short-term losses.

Anton Kharitonov, expert at Traders Union, notes that D.R. Horton faces renewed selling pressure following the notable stake reduction by Pictet Asset Management. He sees institutional sentiment turning cautious, with technical signals reflecting persistent weakness in the short and medium term. Potential for further downside remains as long as price holds below key resistance at $155.2. "Base case is continued consolidation; unless $142.6 breaks, I’m not chasing the downside risk here."

Previously it was reported that DR Horton maintained bullish momentum above major moving averages, but emerging caution signals called for vigilance amid heightened volatility. The latest technical setup—combined with a notable reduction in institutional holdings—adds weight to downside risks, making a break of the $142.6 support level a key focus for traders in the near term.

Source of Data: DHI Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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