LEN-B finds buyers around 47.22 for the third day in a row
Lennar Corporation Class B (LEN-B) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
LEN-B finished the week 8.82% higher at 48.88 after gaining $1.48 (3.12%) today on low volume, significantly outperforming the S&P 500 (1.05%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LEN-B as at Jul 10, 2020):
Friday's trading range has been $2.28 (4.83%), that's slightly above the last trading month's daily average range of $1.97. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LEN-B. Prices continued to consolidate within a tight trading range between 47.22 and 49.75 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 49.55 (R1). The stock found buyers again today around 47.22 for the third trading day in a row after having found demand at 47.35 in the prior session and at 47.50 two days ago. The last time this happened on June 2nd, LEN-B gained 6.26% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 49.75 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Lennar. Out of 90 times, LEN-B closed higher 53.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 63.33% with an average market move of 1.62%.