As of 05/20/2022
  Indus: 31,262 +8.77 +0.0%  
  Trans: 13,491 +51.76 +0.4%  
  Utils: 991 +1.46 +0.1%  
  Nasdaq: 11,355 -33.88 -0.3%  
  S&P 500: 3,901 +0.57 +0.0%  
YTD
-14.0%  
-18.1%  
 +1.0%  
-27.4%  
-18.1%  
  Targets    Overview: 05/15/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow14,700 or 12,400 by 06/01/2022
  Up arrow1,050 or 940 by 06/01/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,150 or 3,700 by 06/01/2022
CPI (updated daily): Arrows on 4/21/22
As of 05/20/2022
  Indus: 31,262 +8.77 +0.0%  
  Trans: 13,491 +51.76 +0.4%  
  Utils: 991 +1.46 +0.1%  
  Nasdaq: 11,355 -33.88 -0.3%  
  S&P 500: 3,901 +0.57 +0.0%  
YTD
-14.0%  
-18.1%  
 +1.0%  
-27.4%  
-18.1%  
  Targets    Overview: 05/15/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow14,700 or 12,400 by 06/01/2022
  Up arrow1,050 or 940 by 06/01/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,150 or 3,700 by 06/01/2022
CPI (updated daily): Arrows on 4/21/22

Bulkowski's KB Homes (KBH) Trading Quiz

 

Released 11/30/2021.

KBH: Quiz

Below is a slider quiz to test your trading ability. Captions appear below the pictures for guidance, so be sure to scroll down far enough to read them.

 

1 / 3
chart pattern

What chart patterns can you find? Look for the following (if you find others, great!): Big W, broadening formation right-angled and ascending, 2 double bottoms, simple ABC correction, channel.

The answer is on the next slide.
2 / 3
chart pattern

The bottom of the Big W shows two double bottoms forming the reversal pattern at the base. The December channel is also a small ABC correction, so you can see how well that one did.

The simple ABC correction has broken out upward when price closed above the pattern's high (although a trendline break is also a good signal).

Question 1: Do you buy or sell short the stock?
Question 2: What is your price target?
Question 3: What is your stop loss price?
See the next slide for answers.
3 / 3
chart pattern

Answer 1 (buy?): Buy because the breakout is upward, confirming the pattern as valid.

Answer 2 (target?): How about 68.18? That's the height of the channel projected upward from the trendline breakout price.

If I use the big Ws right handle low (A) as the start of a measured move up chart pattern (ABC, it makes the channel retrace look proportional), then I get a measure rule target of 80. That's B - A + C or 63 - 37 + 54= 80 (eyeballing it).

Answer 3 (stop?): Place a stop loss below the minor low before the breakout (D). That's on May 13 at low of 55.40, so I'd place it at 55.33. The stock closed at 64.70 so that would give a potential loss of 14%. That's much too far. Volatility is $2.65, so place a stop no closer than the day's low (63.69) minus 2.65 or 61.04. I'd place it at 60.93. That's a 6% give back, which is better than 14%.

Price reached a high of 85.45 before giving easing down.

The End.

See Also

 
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Chart Patterns: After the Buy

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