LEN finds buyers around 70.81 for the third day in a row


Lennar Corporation Class A (LEN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team

Highlights

LEN finds buyers around 70.81 for the third day in a row
LEN stuck within tight trading range
LEN closes within previous day's range after lackluster session

Overview

LEN finished the month 17.41% higher at 72.35 after edging higher $0.07 (0.1%) today on low volume, underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (LEN as at Jul 31, 2020):

Daily technical analysis candlestick chart for Lennar Corporation Class A (LEN) as at Jul 31, 2020

Friday's trading range has been $1.68 (2.32%), that's far below the last trading month's daily average range of $2.66. 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. Prices continued to consolidate within a tight trading range between 70.73 and 73.06 where it has been caught now for the last three trading days.

Five candlestick patterns are matching today's price action, the Dragonfly Doji which is known as bullish pattern, three bearish patterns, the Bearish Doji Star, the Hanging Man and the Northern Doji and one neutral pattern, the Doji.

Prices are trading close to the key technical resistance level at 73.75 (R1). The stock found buyers again today around 70.81 for the third trading day in a row after having found demand at 71.13 in the previous session and at 70.73 two days ago. The last time this happened on June 2nd, LEN gained 5.41% on the following trading day.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying might accelerate should prices move above the nearby swing high at 73.06 where further buy stops could get triggered.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Lennar. Out of 5 times, LEN closed lower 80.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after eight trading days, showing a win rate of 80.00% with an average market move of -0.42%.


Market Conditions for LEN as at Jul 31, 2020

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