LEN runs into sellers around 79.84 for the third day in a row
Lennar Corporation Class A (LEN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
LEN finished Wednesday at 78.89 surging $2.99 (3.94%) on high volume, notably outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over two weeks. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LEN as at Sep 16, 2020):
Wednesday's trading range has been $2.73 (3.53%), that's slightly above the last trading month's daily average range of $2.71. 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 slightly lower than usual for LEN. Prices continued to consolidate within a tight trading range between 74.65 and 79.84 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 20-day moving average at 76.75. When this moving average was crossed above the last time on September 11th, LEN gained 1.96% on the following trading day. Unable to break through the key technical resistance level at 79.47 (R1), the share closed below it after spiking up to 79.84 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. Lennar ran into sellers again today around 79.84 for the third trading day in a row after having found sellers at 79.36 in the prior session and at 79.47 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 80.00, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Lennar. Out of 571 times, LEN closed higher 53.24% 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 56.92% with an average market move of 0.98%.