June 23 Chart of the Day - KB Home
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
KB Home (KBH) reported stronger-than-expected revenue this quarter, but the headline doesn’t tell the full story. Year-over-year sales dropped by 10.5%, and full-year guidance came in nearly 2.4% lower than previous estimates.
The big question now: was this soft outlook already baked into the chart, or is the market just beginning to digest the implications?
We’ll dig into the price action for answers—looking for potential support zones, breakdown levels, and whether bulls have enough foundation to build on… or if the cracks in the housing market are about to widen.
Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.
Since May 2023, we've showcased over 525+ Charts of the Day and provide a Free Quick Start Guide to traders with ambitious income goals for our patent-pending NeuroTrading Method™.
Monthly Chart
On the monthly chart we can see that since setting its $89.70 all time high last fall price entered nearly a $40 free fall bouncing around the $50 level.
Since April price rebounded to the $55 level before fading back down to the $50 area.
This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.
Weekly Chart
On the weekly chart, we can see with much more clarity the relentless selling pressure during the past nine months before bouncing and likely forcing many of the shorts to cover their positions.
Technically speaking, the chart reveals that much more downside could be in its future.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.
With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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