Weaker technical forecast for KB Home as stock downgraded to Sell Candidate.
(Updated on Sep 26, 2022)
Sell candidate since 2022-09-26 PDF
The KB Home stock price fell by -4.37% on the last day (Monday, 26th Sep 2022) from $27.20 to $26.01. During the last trading day the stock fluctuated 5.04% from a day low at $25.99 to a day high of $27.30. The price has fallen in 7 of the last 10 days and is down by -12.98% for this period. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -1 million shares and in total, 2 million shares were bought and sold for approximately $47.19 million.
The stock has broken the wide and falling short-term trend down. Firstly a stronger fallrate is indicated, but false breaks and "sell-off" may occur. However, a further fall is realistic and any reactions back to the breaking point ($27.13) are considered to be a "second chance" to get out. According to the fan-theory $22.11 will represent the new bottom line of the next trend, but it is far too early to say this for certain.
Signals & Forecast
Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. The KB Home stock holds sell signals from both short and long-term moving averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $27.73 and $29.70. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Monday, September 12, 2022, and so far it has fallen -12.98%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Support, Risk & Stop-loss
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $1.31 between high and low, or 5.04%. For the last week, the stock has had daily average volatility of 4.03%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations For The Upcoming Trading Day Of Tuesday 27th
For the upcoming trading day on Tuesday, 27th we expect KB Home to open at $26.43, and during the day (based on 14 day Average True Range), to move between $24.86 and $27.16, which gives a possible trading interval of +/-$1.15 (+/-4.40%) up or down from last closing price. If KB Home takes out the full calculated possible swing range there will be an estimated 8.81% move between the lowest and the highest trading price during the day.
With no support below and resistance from accumulated volume @ $0.59 (2.27%) our system find the risk reward not very attractive.
Is KB Home stock A Buy?
KB Home holds several negative signals and is within a wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Sell candidate.
Current score: -2.275Sell Candidate Downgraded
Predicted Opening Price for KB Home of Tuesday, September 27, 2022
The predicted opening price is based on yesterday's movements between high, low, and closing price.
|Fair opening price September 27, 2022||Current price|
Remember To Visit Our YouTube Channel
Fibonacci Support & Resistance Levels
Accumulated Volume Support & Resistance Levels
Click to get the best stock tips daily for free!
About KB Home
KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers. The company also offers financial services, such as insurance products and title services... KBH Profile
Top Fintech Company
featured in The Global Fintech Index 2020 as the top Fintech company of the country.