KB Homes – KBH – Stock with a Ten Year Inverse Head and Shoulders pattern

KB Homes (KBH) stock is exhibiting perhaps the largest inverse head and shoulders pattern that I have ever seen. It practically transcends time and brings together two eras of the stock market – the Great Recession and one of the great bull rallies of all time.

But it even goes back further than just the last ten years and all the way back to when the housing market peaked in 2005-2006, and started heading downward. Because without that massive decline, you don’t have this impeccable inverse head and shoulders pattern. 

The left shoulder bottom didn’t form until 2009, the head didn’t bottom until 2012, and in 2016, the right shoulder bottom of KB Homes stock was formed.

What is amazing about KB Homes Stock

The pattern is actually confirming today, on every single time frame – daily, weekly, and monthly. In fact, it is most splendid when you look at it through the monthly purview. 

However, there is an earnings report in just a few days, and if it can keep it together here, I will likely get long on it immediately thereafter – assuming all goes well with the report and the reward-to-risk ratio is still favorable. 

So time is on your hands, the housing market is hot, and KBH stock is just getting started. 

Here’s the chart of KB Homes so you can see exactly what is going on with the stock and the pattern I am talking about if you decide to swing-trade it

kb homes stock inverse head and shoulders pattern

 

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