LEN closes higher for the 2nd day in a row
Lennar Corporation Class A (LEN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LEN ended the month 1.92% higher at 61.62 after gaining $0.67 (1.1%) today on low volume, slightly underperforming the S&P 500 (1.54%). Trading up to $1.04 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jun 30, 2020):
Tuesday's trading range has been $1.80 (2.94%), that's far below the last trading month's daily average range of $2.99. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LEN.
The market managed to close back above the 20-day moving average at 61.39 for the first time since June 18th. When this moving average was crossed above the last time on June 15th, LEN gained 0.69% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 62.11 where further buy stops might get activated. Further buying could move prices higher should the market test May's close-by high at 65.90. As prices are trading close to June's low at 57.09, downside momentum might accelerate should Lennar mark new lows for the month.
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 319 times, LEN closed higher 53.29% 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 55.80% with an average market move of 0.63%.