KB Home (NYSE: KBH)

KB Home operates as a homebuilding and financial services company in the United States. The company constructs and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, move-up, and active adult homebuyers. It also provides title and insurance services to homebuyers. As of November 30, 2012, the company delivered 6,282 homes. It has operations in Arizona, California, Colorado, Florida, Maryland, Nevada, New Mexico, North Carolina, Texas, and Virginia. The company was formerly known as Kaufman and Broad Home Corporation and changed its name to KB Home in 2001. KB Home was founded in 1957 and is headquartered in Los Angeles, California.
To review KB's stock, please take a look at the 1-year chart of KBH (KB Home) below with my added notations:
For the last (2) months KBH has been stuck within a common pattern known as a rectangle. Rectangle patterns form when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. KBH's rectangle pattern has formed a $22.50 resistance (red) and a $20 support (navy). A break above $22.50 would also be a new 52-week high.
The Tale of the Tape: KBH has formed a rectangle pattern. The possible long positions on the stock would be either on a pullback to $20, or on a breakout above $22.50. The ideal short opportunity would be on a break below $20.
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