Home-builders Remain Weak: KBH, PHM, DHI

This morning KB Home (NYSE:KBH) is trading sharply lower this morning after the company said that it may have to repay $180 million in loans after a joint venture with South Edge LLC failed to get an involuntary Chapter 11 petition dismissed. The stock had been weak since making a multi-month high on January 16, 2011 at $16.11 a share. Today KB Home stock is trading lower by 0.87 cents to $13.85 a share. The stock will have some minor daily chart support around the $$13.60 level. The next daily chart support level for the stock would be around the $13.00 area should the stock decline further.

Pulte Group Inc. (NYSE:PHM) reported earnings before the bell this morning. The stock is trading slightly higher on the session after reporting a loss of 0.44 cents a share. Pulte Group stock has some minor daily chart support around the $7.50 level. Should the stock trade below this support level the next important daily chart support area would be around the $7.00 level.

The overall home-builder sector looks to have some further short term weakness on the charts. Often the stocks in this industry group trades very similar and close together. At this time the home-builder stocks could see further declines.

About Nicholas Santiago 576 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

Visit: InTheMoneyStocks

Be the first to comment

Leave a Reply

Your email address will not be published.