LEN drops to lowest close since January 23, 2017
Lennar Corporation Class A (LEN) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, LEN finished the week -3.64% lower at 43.15 after edging lower $0.16 (-0.37%) today, significantly underperforming the S&P 500 (1.42%). Today's close at 43.15 marks the lowest recorded closing price since January 23, 2017. Closing below Thursday's low at 43.22, the market confirmed its breakout through the previous session low after trading up to $0.52 below it intraday.
Daily Candlestick Chart (LEN as at Oct 12, 2018):
Friday's trading range has been $1.29 (2.94%), that's slightly above the last trading month's daily average range of $1.27. 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 strongly higher than usual for LEN.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on Tuesday, LEN actually lost -1.33% on the following trading day.
Prices are trading close to the key technical resistance level at 43.66 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
2017's low at 41.52 is within reach and we might see further downside momentum should the stock break out beyond.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Lennar Corp.. Out of 65 times, LEN closed higher 52.31% 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 64.62% with an average market move of 2.85%.