KB Home widens gains - Analysis - 24-06-2022

KB Home's stock (KBH) rallied in the last session as the construction company said the housing sector is in good shape and asserted its earnings forecasts for the year, with the stock surging 8.62% in the last session, or 2.26 points, settling at 28.49, with trading volumes surpassing 5.7 million shares, above 10-day averages of 3 million shares. 

The stock is trying to correct the main downward short-term trend as the stock trades alongside the main downward trend line, while venting off oversold saturation from the RSI after releasing positive signals, while suffering negative pressure from the 50-day SMA. 

Therefore we expect the stock to return lower, targeting the support of 24.78 anew, provided the resistance of 30.80 holds on.

Expected trend for today: Bearish