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KB Home (KBH) Crossed Above the 20-Day Moving Average: What That Means for Investors

After reaching an important support level, KB Home (KBH) could be a good stock pick from a technical perspective. KBH surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

KBH could be on the verge of another rally after moving 8.8% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.

The bullish case only gets stronger once investors take into account KBH's positive earnings estimate revisions. There have been 3 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Investors may want to watch KBH for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

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