KBH – 30-Min Bullish Trade Setup!!📈
🔹 Ticker: KBH (NYSE)
🔹 Setup: Trendline + Horizontal Support Bounce
🔸 Trigger Zone: ~$54.65 (yellow support zone + trendline retest)
📊 Trade Plan (Long Bias)
✅ Entry Range: $54.60–$54.80
✅ Stop Loss (SL): Below $53.28 (white support base)
✅ Profit Targets: • TP1: $56.85 (recent resistance zone)
• TP2: $59.64 (range top / March high)
📐 Risk-Reward Notes:
• Price bouncing at trendline + horizontal support confluence
• Bullish candle forming right on the yellow zone
• Risk-reward ratio is favorable with clean upside
• Setup supported by previous structure
🔍 Technical Highlights:
• Trendline holding strong since early April
• Support at $54.60 defended multiple times
• Bearish pressure stalling → possible reversal setup
• Potential for rotation back to upper range
⚙️ Trade Management:
• Trail stop after TP1
• Lock in gains if price struggles near $56.85
• Watch volume + candle strength for continuation toward TP2
⚠️ Setup Invalidation:
❌ Breakdown below $53.28
❌ Bearish engulfing candle with heavy volume
❌ Consolidation under yellow zone for multiple candles
KBH trade ideas
Breaking: KB Home (NYSE: KBH) On The Verge of a Selling SpreeShares of KB Home (NYSE: NYSE:KBH ) saw a 7% downtick early morning in Tuesday's premarket session breaking below the psychological support point of $60 enroute towards a selling spree.
Operating as a homebuilding company in the United States, the company operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells a variety of 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.
Yesterday after market close KB Home report earnings results, posting lower profit and revenue in its fiscal first quarter, hurt by softer-than-expected demand.
KB Home shares have declined 10% over the past year due to affordability pressures and elevated interest rates, with Q1 results showing significant demand slowdown.
The company reported weak Q1 financials, with earnings and revenue misses, a 9% drop in deliveries, and a 17% fall in net orders.
Elevated interest rates and increased supply have pressured margins and demand, particularly affecting first-time buyers, leading to reduced revenue guidance and operating margin
Financial Performance
In 2024, KB Home's revenue was $6.93 billion, an increase of 8.10% compared to the previous year's $6.41 billion. Earnings were $650.19 million, an increase of 10.97%.
Technical Outlook
As of the time of writing, shares of NYSE:KBH are down 7.20% on Tuesday's premarket trading with the asset facing selling pressure, should the RSI which is currently at 48 dip to 40, a bearish campaign would be inevitable- similarly, a move above the $72 pivot could change the course for NYSE:KBH shares.
Analyst Forecast
According to 13 analysts, the average rating for KBH stock is "Hold." The 12-month stock price forecast is $75.5, which is an increase of 22.19% from the latest price.
KB Homes.... Do what you want with earnings...but see trendsNYSE:KBH may be the real estate and Commercial real estate bubble indicator of things to come...
When times are running hot, you shouldn't see red, unless you are just propping things up like back in the day when Sub-prime was the cool sign-on-the-dotted-line days of real estate.
So is today the Ai on the dotted line days?? CMBS will be in trouble
KBH KB Home Options Ahead of EarningsAnalyzing the options chain and the chart patterns of KBH KB Home prior to the earnings report this week,
I would consider purchasing the 60usd strike price Puts with
an expiration date of 2025-4-17,
for a premium of approximately $2.82.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Massively overbought with rescission starting.The homebuilders will probably be one of the best shorts over the next 2 years. Rate cuts are NOT bullish for homebuilders at this point in they cycle. The consumers is broke, and the price of homes is 50% higher than the historic mean. Furthermore, property taxes has made even low end homes unaffordable to the majority of first time home buyers. We are entering a perfect storm of a generational top in an industry.
KB Home Strong Revenue Growth Fails to Impress InvestorsDespite beating revenue expectations, KB Home (NYSE: NYSE:KBH ) saw its stock drop sharply after its Q3 CY2024 earnings report. The homebuilder's robust revenue growth of 10% year-over-year, reaching $1.75 billion, coupled with strong net earnings per share ($2.04), failed to prevent a significant decline in after-hours trading, where shares dropped 6%. This price action has left many investors questioning the sustainability of KB Home's stock, particularly amid rising interest rates and shifting housing demand.
Fundamental Overview
At first glance, KB Home’s fundamentals appear solid. Revenue of $1.75 billion exceeded analyst estimates of $1.73 billion by a margin of 1.4%, and their profit per share came in at $2.04, only slightly missing the consensus of $2.06. The company’s sales were buoyed by strong demand for affordably priced homes, especially as mortgage rates saw some moderation toward the end of the quarter.
However, several metrics raised concerns:
1. Gross Margin Decline: KB Home (NYSE: NYSE:KBH ) reported a 20.6% housing gross profit margin for Q3 2024, down from 21.5% in the same quarter last year. The slight decline reflects a mix of geographic factors and rising construction costs, particularly as the company expanded into different markets.
2. Backlog Decline: The company's backlog, a key indicator of future revenue, dropped 14% year-over-year to $2.92 billion, reflecting slower future sales growth. This decline, coupled with flat net orders for the quarter, is a worrying sign that demand might be softening in the coming quarters.
3. Inventory Build-Up: Inventories increased by 10%, indicating a cautious approach by the company, perhaps anticipating further slowdowns in demand or higher costs to meet future projects.
4. Capital Deployment: KB Home (NYSE: NYSE:KBH ) has focused on returning capital to shareholders, repurchasing $150 million in stock during the quarter, which brings their total repurchases for the year to $250 million. This capital deployment strategy reflects confidence in their long-term prospects, despite near-term headwinds.
Technical Outlook
Technically, NYSE:KBH was trading in a long-standing rising trend before the earnings report. The stock’s year-to-date performance had been impressive, rising nearly 40% through Tuesday's close. However, after the earnings release, the stock dipped 6% in after-hours trading, signaling potential bearish momentum.
Key technical indicators to watch:
1. Ascending Triangle Breakdown: Prior to the earnings release, NYSE:KBH was forming an ascending triangle, a bullish pattern suggesting the potential for a breakout. However, the failure to surpass the upper trendline combined with below-expectation EPS has triggered a breakdown below the lower trendline, indicating that further price correction may be in play.
2. Support Levels: Investors should closely watch the following support levels:
- $79: A key pivot where the stock found support between July and early September. A break below this level could lead to a stronger selloff.
- $72: This level coincides with the rising 200-day moving average, a critical support line from a technical standpoint. If the stock falls here, it may attract buyers seeking a longer-term opportunity.
- $64: If bearish momentum accelerates, this level would mark a significant retracement to the consolidation range seen earlier this year, potentially representing a more substantial correction.
3. Relative Strength Index (RSI): On Tuesday, KB Home (NYSE: NYSE:KBH ) closed with an RSI of 60.65, suggesting that the stock was neither overbought nor oversold. As of Wednesday morning pre-market trading, the stock was down 6.78%, and the RSI has dropped, signaling that the stock is approaching oversold territory. This dip could indicate a short-term buying opportunity if it stabilizes around key support zones.
Market Dynamics and Interest Rates
While KB Home (NYSE: NYSE:KBH ) managed to grow revenues and deliver solid earnings, the broader macroeconomic environment is weighing heavily on the stock. Elevated mortgage rates, which have been rising due to the Federal Reserve’s tightening cycle, continue to act as a headwind for homebuilders like KB Home (NYSE: NYSE:KBH ). The third quarter saw some softening in demand, particularly in June and July, as potential homebuyers struggled with the affordability crisis driven by higher rates.
However, in August, as mortgage rates slightly moderated, KB Home (NYSE: NYSE:KBH ) noted an uptick in net orders. This underscores the sensitivity of the housing market to even small changes in interest rates. A sustained decrease in rates could drive renewed demand, especially for KB Home’s affordably priced homes.
Long-Term Prospects and Guidance
Looking ahead, KB Home (NYSE: NYSE:KBH ) remains optimistic, providing guidance for full-year 2024 housing revenues between $6.85 billion and $6.95 billion, with an average selling price of approximately $490,000. The company expects its homebuilding operating income margin to hover between 11.1% and 11.2%, assuming no significant inventory-related charges.
CEO Jeffrey Mezger highlighted the company’s focus on both reinvestment and returning capital to shareholders, including their aggressive stock buyback program. The company’s investments in land acquisition and development are up 59% year-over-year, signaling a long-term commitment to growth even amid challenging market conditions.
Conclusion:
KB Home’s Q3 CY2024 performance demonstrates a strong foundation with decent revenue growth, solid earnings, and a disciplined approach to capital deployment. However, investors have reacted negatively due to lower margins, flat net orders, and concerns about the broader housing market.
Technically, the stock appears to be at a critical juncture. The breakdown of the ascending triangle, combined with a sharp post-earnings selloff, suggests further downside potential. Investors should closely monitor support levels around $79 and $72 for potential buying opportunities.
From a long-term perspective, the company’s investments in land and its ability to maintain profitability in a tough market are positive signs. However, until mortgage rates stabilize, the stock may remain volatile in the near term. That said, any signs of rate moderation could lead to a sharp rebound, especially given the company’s positioning in the affordable housing market.
RECESSION ALERT - Homebuilders WAY Overbought | SHORT $KBHLeverage. It's a beautiful thing.
There is not much to say about this one, the chart speaks for itself.
Brief Disclaimer: this chart has evaded me - I personally think it should have corrected awhile ago (see grey arrows). Nonetheless, I never bought it... WHY?:
The economy is now well into a recession (has been for at least a year). For whatever reason this thing was bought into the stratosphere.
Now comes profit-taking and the COLLAPSE! This baby is going DEEP!
Thank you for playing.
💀💀💀
KBH Earnings PlayKBH is in a sweet spot! While options volatility is already elevated (40%), it should continue to raise into earnings. It's posting a nice bullish squeeze on the TTM Squeeze indicator as well as buy signals on the premium Big3 Squeeze (from Simpler Trading). Typically, the stock price rises anywhere from 3-9% between now and the earnings event. That would take us to about $68. I like this long a lot!
KBH KB Home Options Ahead of EarningsIf you haven`t sold KBH before the previous earnings:
Then analyzing the options chain and the chart patterns of KBH KB Home prior to the earnings report this week,
I would consider purchasing the 65usd strike price in the money Puts with
an expiration date of 2024-6-21,
for a premium of approximately $7.60.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
KBH KB Home Options Ahead of EarningsAnalyzing the options chain and the chart patterns of KBH KB Home prior to the earnings report this week,
I would consider purchasing the 45usd strike price Puts with
an expiration date of 2024-1-19,
for a premium of approximately $2.92.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
KBH Bearish inclined naked puts 1 Sep expiryThere is a lack of existing inventory on the market as many existing homeowners are hesitant to sell because of rising interest rates. If interest rates are cut or halted and we experience a soft landing, there will initially be a burst of growth before it stagnantes or sinks
- Since March 2023 housing as a sector has a broad uptrend alignment.
- Buffet is also betting big on housing
110 PUT Contracts sold
Strike 48 (9.78% from strike)
0.23
BP 76K
Premium 2530
I am recording this trade two days after I entered. Because of the high US notes we have seen two broad based drops that has resulted in me being 1% away from strike.
Today I remembered why I was trying to shy away from selling options. Because of the poor Risk/Reward if a trade goes against you. I probably close this tonight and take the loss unless price stays above 48 which is also a S&R point
Next Stock Market Collapse in mid 2026? $KBH - the guiding lightIt is almost impossible for a layman or retail investor like me to know roughly when stock market will collapse or goes through big correction, unless i am part of the mastermind of Goldman Sach, JP Morgan and colluding with politicians
Hence, i look at charts repeatedly day in and day out in order to find out if there is any "cyclical pattern" which is NOT noticeable to the rest
Though nothing is for certaint, while screening through charts, i bumped into this historical KBH stock chart
Using the simple assumption that when economy is growing generally, residential construction in the United States can be taken generally as a good indicator
from the 80's to late 90's, price was fluctuating in large side way range in the form of inverted head and shoulders before piercing pass the median line and skyrocketed in upper channel towards the channel top. This exceptional growth period took place from early 2022 after the 2000 dotcom bust and took about 3.5 year before peaking, consolidating and collapsed
Again, if my interpretation is correct, since end 2007 until end 2022, price of KBH has been gyrating side way massively and formed a gigantic inverted head and shoulders.
Price has retested and successfully found support at the median channel line and has been going up for at least 8 months.
IF AND ONLY IF, the same 3.5 years of skyrocketing price repeats as drawn in Oval shape, we will start worry about market collapse around Mid-2026
Whether i am correct or close enough with such "prediction", it remains to be seen until later.
Meanwhile, i also monitor the inverted yield curve which seems pretty bad. So i am open to any possibility.
This is solely my research interest and must not be take as a solicit for anyone to buy or sell any stocks.
KBH KB Home Options Ahead of EarningsAnalyzing the options chain of KBH KB Home prior to the earnings report this week,
I would consider purchasing the 45usd strike price Puts with
an expiration date of 2024-1-19,
for a premium of approximately $2.72.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
KBH - Push to Top of ChannelThe top of the channel will be tested with this strong move. I do expect rejection at the top.
An inverted H&S pattern is present but it is kind of irrelevant the channel up is the concern.
Rejection at top of channel which may lead to further downward momentum following this top.
KBH Chart: Macro Resistance TEST - What Next?!Here we are looking at KBH on the Weekly TF…
As you can see, KBH currently testing a MACRO downwards sloping resistance line dating back to the early 2000’s. When assessing where it is, it’s important to note two interrelated factors. The first factor we need to consider is that KBH is currently breaking out from the downwards sloping resistance line. The weekly candle is coming to a close, and it is looking like it will close above the trend line. The second factor we must consider is that A LOT of charts are VERY over extended, and have slightly breached their MACRO resistance lines.
To me, this seems like a potential good time to short, despite the slight breakout of this line. It seems in line with the many over extended charts in the market. Paired with the weary fundamentals (high interest rates for example), this may be a good time to start considering longer term swing short entries!
I will continue to monitor this chart, and provide timely updates as I see fit!
Cheers!!
KBH - ABC ShortIndexes turning bearish at least in the short term so its time to find a suitable short.
And so KBH here appears to be completing an ABC retracement that if correct will see it go much lower.
Plenty to go on:
Its hit the 1:1 .
Its printed a probable exhaustion gap.
Its formed a fast wicked top SRP through the 1:1.
Its filled a gap from 9 June.
I've bought a Jan 2023 ATM put near 0.618 retracement
Not advice.
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