Is The Foundation Cracking In The Home-builder Stocks?

This morning, most of the leading home-builder stocks are coming under early selling pressure. This important stock sector has surged higher since the October 4, 2011 stock market low. Toll Brothers Inc (NYSE:TOL) is one the most followed and traded home-builders that any trader or investor can track. This stock caters to the more affluent consumer as it builds high end homes. Today, TOL stock is trading lower by 0.47 cents to $24.13 a share. Short term traders can watch for intra-day support around the $23.81 and $23.60 levels. The daily chart of TOL is still holding up fine at this time, however, the stock is overbought in the near term and due for a pullback.

Some leading home-builder stocks that are also declining today include Lennar Corp (NYSE:LEN), KB Home (NYSE:KBH), and DR Horton Inc (NYSE:DHI). These stocks are all overbought on the daily charts and a pullback is likely in the near term.

About Nicholas Santiago 575 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.

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