LEN finds buyers again around 53.04
Lennar Corporation Class A (LEN) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
LEN ended the week 2.45% higher at 53.13 after losing $0.53 (-0.99%) today, slightly underperforming the S&P 500 (-0.58%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (LEN as at May 17, 2019):
Friday's trading range has been $1.06 (2.0%), that's slightly above the last trading month's daily average range of $1.02. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LEN.
Four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on January 23rd, LEN actually gained 2.77% on the following trading day.
Unable to break through the key technical resistance level at 53.41 (R1), Lennar closed below it after spiking up to 54.10 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 53.15 in the prior session, the market found buyers again around the same price level today at 53.04.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 52.20.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Lennar. Out of 29 times, LEN closed higher 55.17% 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 65.52% with an average market move of 2.73%.