Home-builders Stocks Hit The Roof – TOL, LEN, DHI, KBH

Most of the leading home-builder stocks are now trading into overbought territory. When a stock or sector becomes overbought it will become susceptible to near term pullbacks. Today, most of the leading home-builder stocks are coming under early selling pressure. Toll Brothers Inc (NYSE:TOL) is considered to be the leading stock in the sector. This stock has surged sharply higher since April 10, 2012 when the stock traded around $21.78 a share. Today. TOL stock is declining lower by 0.43 cents to $25.13 a share. This stock is trading above all of the major daily chart moving averages which puts the stock in a strong technical position. The problem with the stock at this time is that it is overbought and will likely need to consolidate or pullback before moving higher. Short term traders can watch for intra-day support around the $25.00, and $24.65 levels.

Some other leading home-builder stocks that are selling off today include Lennar Corp (NYSE:LEN), D.R. Horton Inc (NYSE:DHI), and K.B. Home (NYSE:KBH). All of these stocks have similar patterns to TOL, traders should expect near term pullbacks in all of these stocks before another attempt to move higher.

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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