LEN pushes through key technical resistance level
Lennar Corporation Class A (LEN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LEN ended the week 18.66% higher at 60.09 after gaining $1.09 (1.85%) today on low volume, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 60.09 marks the highest recorded closing price since March 6th. Trading up to $0.93 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 59.85, the share confirmed its breakout through the prior session high after trading up to $0.61 above it intraday.
Daily Candlestick Chart (LEN as at May 22, 2020):
Friday's trading range has been $1.95 (3.28%), that's below the last trading month's daily average range of $2.59. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LEN.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on April 17th, LEN lost -6.87% on the following trading day.
Buyers managed to take out the key technical resistance level at 59.53 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Lennar. Out of 315 times, LEN 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 55.87% with an average market move of 0.61%.