Is The Foundation Cracking In The Home-builder Stocks?
This morning, most of the leading home-builder stocks are coming under early selling pressure. This important stock sector has surged higher since the October 4, 2011 stock market low. Toll Brothers Inc (NYSE:TOL) is one the most followed and traded home-builders that any trader or investor can track. This stock caters to the more affluent consumer as it builds high end homes. Today, TOL stock is trading lower by 0.47 cents to $24.13 a share. Short term traders can watch for intra-day support around the $23.81 and $23.60 levels. The daily chart of TOL is still holding up fine at this time, however, the stock is overbought in the near term and due for a pullback.
Some leading home-builder stocks that are also declining today include Lennar Corp (NYSE:LEN), KB Home (NYSE:KBH), and DR Horton Inc (NYSE:DHI). These stocks are all overbought on the daily charts and a pullback is likely in the near term.