In this daily bar chart of KBH, below, we can see a decline from last January and some stability in prices from the middle of October. Prices recently closed back above the bottoming 50-day moving average line but remain below the declining 200-day line. The daily On-Balance-Volume (OBV) line shows a decline from January to October telling us that sellers were more aggressive. The OBV line has traded sideways since October signaling a shift to more aggressive buying by investors. The daily Moving Average Convergence Divergence (MACD) oscillator crosses to the upside in late October giving us a cover shorts buy signal and it is now close to crossing the zero line for an outright go long signal.
In this weekly bar chart of KBH, below, we can see that prices are below the declining 40-week moving average line but prices are so far holding above long-term support in the$16-$14 area. The weekly OBV line shows a slow decline from last January and the weekly MACD oscillator is close to a cover shorts buy signal on this longer time frame.
In this Point and Figure chart of KBH, below, we can see that a trade at $22.00 will be a triple top breakout and likely give us an upside price target.
Bottom line strategy: aggressive traders could probe the long side of KBH on strength above $22 risking below $18.