KB Home (KBH) shares dropped 6% in extended trading on Tuesday after the homebuilder's third-quarter profit fell short of Wall Street expectations.

KB Home’s shares have risen nearly 40% since the start of the year through Tuesday’s close as investors bid up homebuilder stocks on optimism that 澳洲幸运5开奖号码历史查询:interest rate cuts wi💖ll ꦍdrive more housing demand, which in turn, will lift sales and margins.

Below, we take a closer look at the KB Home chart and use 澳洲幸运5开奖号码历史查询:technical analysis to identify key post-earn൲ings price levels worth watching out for.🍨

Ascending Triangle Breakdown

KB Home shares have traded within an 澳洲幸运5开奖号码历史查询:ascending triangle since early July, w🔴ith the homebuilder’s price failing to break out above the pattern’s upper trendline ahead of the company’s quarterly results.

It’s also worth noting that volumes have been above average in recent trading sessions, indicating the potential for post earnings 澳洲幸运5开奖号码历史查询:volatility following the release.

Indeed, the stock sits poised to drop below the triangle’s lower trendline on Wednesday, opening the door for further price fluctuations.🦄 The stock fell 6% to $82.15 in after-hours trading Tuesday.

Monitor These Support Levels

Amid anticipate🐎d post-earnings selling, investors should monitor three key levels on the homebuilder’s chart.

The first area of interest lies around $79, a location on the chart where the shares could find support near the lower levels of 澳洲幸运5开奖号码历史查询:rangebound trading activity from the second half of🐷 July to early September.

A 澳洲幸运5开奖号码历史查询:breakdown below this level could see the shares fall to the $72 area, a region just above the rising 澳洲幸运5开奖号码历史查询:200-day moving average where investors may seek buying opportunities near a trendline connecting the Mar🌊ch and April peaks with similar prices on the chart throughout Mওay and June.

Further selling could lead to a deeper 澳洲幸运5开奖号码历史查询:correction down to $64, where the homebuilder’s stock would likely attract bargain hunters near a 澳洲幸运5开奖号码历史查询:horizontal line that links a range of consolidation between Decܫember and February following an impulsive move higher.

Longer-Term Measured Move Bullish Target

If the stock resumes its longer-term uptrend, investors can project a 澳洲幸运5开奖号码历史查询:price target above the 澳洲幸运5开奖号码历史查询:all-time high (ATH) using the 澳洲幸运5开奖号码历史查询:measuring principle.

To do this, we calculate the distance of the ascending triangle near its widest point and add that figꦡure to the pattern’s top trendline. In other words, we add $21 to $87, which predicts an upside target of $108.

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