KBH is giving up all of today's "better" than expected housing data. The trends are still not looking good. I would continue to short KBH here below support at 12.70ish down to 12.00
Technicals - Bouncing off support a year ago & and within recent channel...playing to reach near 13.50
Opened 12/23 buying "KBH Jan 15 '16 $12 Call" for -0.94 debit:
-Descent risk/reward entry to play channel
-MACD, Stochastics, DMI turning positive
-Entry=12.59, Stop=11.99, Target=>~13.50
Note, earnings coming on 1/7 and housing recently reported...
After a pause the previous two sessions KBH joined its home-building peers with evidence of further buying pressure after a post-earnings run up and closing in the top third of the bar and testing $16 key price point. A break of this level may offer the opportunity of a short term bought call position.
I believe housing will take a short term hit this year. Maybe even flooding over into next year. I do see a strong recovery though for years following that. I hope prices turn down, so I can start accumulating.
Nice descending triangle reversal pattern. Pattern broke through the upper line with a gapu up and very high volume. The pattern was confirmed a couple of days ago when the stock made a pullback, Price is just over the pivot point but under the 23.6% fib line Price target is around the 38.2% fib line at $19.34. If stock price would go down, stop-loss has been...
