First impressions count when you look at a house. First impressions also count when you look at stock charts. And the chart of KB Home (KBH) looks promising. Think about putting down a deposit.
In this daily chart of KBH, above, we can see that KBH is trading above the rising 50-day simple moving average line. The shares are also trading above the 200-day average line, which is flattening. The On-Balance-Volume (OBV) line is up strongly from the January price low. A close above $15 should put the bulls in a more positive position.
Looking at three years of weekly price data on KBH, above, shows that we are over the flat 40-week moving average. The OBV line is pointed up the past five months telling us that buyers of KBH have been pretty aggressive. The Moving Average Convergence Divergence (MACD) oscillator is positive and above the zero line.
With a constructive daily and weekly chart we want to trade KBH from the long side. Be a buyer on a close above $15 and add above $17. My risk point is weakness below $12.50.