The Floor Falls Out Of KB Home (KBH) After Earnings
Leading U.S. homebuilder, KB Home (KBH), is falling lower after reporting earnings. Today, the stock has dropped by 6.0% to 40.74 a share. The stock is currently testing it’s 200-day moving average, but that key moving average is now minor support. KB Home (KBH) peaked on May 10th, 2021 at $52.48 a share. Since that high pivot, the stock has been making lower highs on the daily chart and that is a pattern of weakness and likely lower share prices ahead.
The next major support level for KB Home (KBH) stock will be around the $36.00 area. This support area is a major retrace level. It is also where the stock broke out of a bearish base in mid-January 2021 before making new highs. Often, when a stock backtests a prior breakout level it will serve as major chart support and be defended by the institutional crowd.
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