Shares of homebuilders DR Horton (DHI - Get Report) , KB Home (KBH - Get Report) , Lennar (LEN - Get Report) , Pulte Group (PHM - Get Report) and Toll Brothers (TOL - Get Report) had a strong post-election rally that stalled a month later. Since highs set on Dec. 8 or Dec. 9, these stocks are down 5.7% to 7.5%, even as housing data remain solid.

The National Association of Home Builders Housing Market Index slipped three points in January but remains at a lofty reading of 67. Single-family housing starts, the key metric for homebuilders, fell 4% to a seasonally-adjusted annual rate of 795,000.

Homebuilders are optimistic the Trump Administration will create a better regulatory environment for small businesses and potential home buyers. The NAHB expects to start 10% more homes in 2017 than in 2016.

But one concern is the spike in mortgage interest rates. Despite the dip in single-family starts, the NAHB notes the December pace was the fourth largest since the Great Recession, and that the annual increase for all of 2016 was 9%.

Here's the monthly graph from the NAHB and Wells Fargo.

 

The NAHB Housing Market Index at 67 in January is shown in blue with the scale on the left of the graph. Single-family starts are shown in red, but the reading on the graph is the 828,000 reading for November. This scale is on the right of the graph.

Here's a scorecard for five major homebuilders followed by their weekly technical charts.

 

Here's the weekly chart for D R Horton.

 

Courtesy of MetaStock Xenith

The weekly chart will be positive if the stock ends this week above its key weekly moving average of $28.14, and above its 200-week simple moving average of $25.81. This "reversion to the mean" provided a buying opportunity at $34.31 during the week of Feb. 12. The weekly momentum reading is projected to rise to 36.92 this week up from 31.92 on Jan. 13.

Investors looking to buy the stock should do so on weakness to $25.81, which is the 200-week simple moving average. Investors looking to reduce holdings should consider selling strength to $29.58, $33.33 and $35.05, which are key levels on technical charts until the end of January, June and the end of 2017, respectively.

Here's the weekly chart for KB Home.

Courtesy of MetaStock Xenith

The weekly chart is positive with the stock above its key weekly moving average of $16.05 and above its 200-week simple moving average of $16.04. This "reversion to the mean" has been a magnet since the week of July 8. The weekly momentum reading is projected to rise to 63.33 this week up from 62.41 on Jan. 13.

Investors looking to buy the stock should consider doing so on weakness to $14.93 and $13.53, which are key levels on technical charts until the end of 2017 and until the end of March, respectively. Investors looking to reduce holdings should consider selling strength to $17.25 and $17.29, which are key levels on technical charts until the end of January and the June, respectively.

Here's the weekly chart for Lennar.

Courtesy of MetaStock Xenith

The weekly chart is positive with the stock above its key weekly moving average of $43.48 and is above its 200-week simple moving average of $43.21. This "reversion to the mean" has been a magnet since the week of Sept. 23. The weekly momentum reading is projected to rise to 57.84 this week up from 54.23 on Jan. 13.

Investors looking to buy the stock should consider doing so on weakness to $43.18, which is a key level on technical charts until the end of January. Investors looking to reduce holdings should consider selling strength to $48.95, which is a key level on technical charts until the end of June.

Here's the weekly chart for Pulte.

Courtesy of MetaStock Xenith

The weekly chart is positive with the stock above its key weekly moving average of $18.84 and just below its 200-week simple moving average of $19.32. This "reversion to the mean" has been a magnet since the week of Sept. 23. The weekly momentum reading is projected to rise to 38.75 this week up from 34.47 on Jan. 13.

Investors looking to buy the stock could have down so on weakness to $17.22, which is a key level on technical charts until the end of March. Investors looking to reduce holdings should consider selling strength to $19.83, $20.51 and $20.77, which are key levels on technical charts until the end of 2017, the end of January and the end of June, respectively.

Here's the weekly chart for Toll Brothers.

 

Courtesy of MetaStock Xenith

The weekly chart shifts to negative if the stock ends the week below its key weekly moving average of $30.75 and below its 200-week simple moving average of $33.35. This "reversion to the mean" provided resistance during the week of Dec. 9. The weekly momentum reading is projected to slip to 65.66 this week down from 66.06 on Jan. 13.

Investors looking to buy the stock should consider doing so on weakness to $29.01, which is the 200-day simple moving average. Investors looking to reduce holdings should consider selling strength to $30.92, $34.60 and $35.71, which are key levels on technical charts until the end of March, June and the end of 2017, respectively.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.