LEN-B pushes through Thursday's high
Lennar Corporation Class B (LEN-B) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
LEN-B ended the week 2.09% higher at 55.69 after gaining $0.50 (0.91%) today on low volume, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing above Thursday's high at 55.63, the stock confirmed its breakout through the prior session high after trading up to $0.14 above it intraday.
Daily Candlestick Chart (LEN-B as at Feb 14, 2020):
Friday's trading range has been $0.97 (1.76%), that's slightly below the last trading month's daily average range of $1.06. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for LEN-B.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on February 7th, LEN-B actually gained 1.54% on the following trading day.
Prices are trading close to the key technical resistance level at 56.27 (R1). After having been unable to move above 55.63 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 55.77.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 56.27 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for Lennar. Out of 37 times, LEN-B closed lower 62.16% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.05% with an average market move of -1.13%.