LEN Forecast and Technical Stock Analysis
Hold candidate since 2020-01-14 Gain 6.72% PDF
Lennar Corporation gained 1.28% in the last trading day ( Wednesday, 22nd Jan 2020 ), rising from $64.94 to $65.77 , and has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the day the stock fluctuated 2.06% from a day low at $64.94 to a day high of $66.28. The price has risen in 9 of the last 10 days and is up by 15.1% over the past 2 weeks. Volume fell in the last day by -0.17 million shares and in total, 3.08 million shares bought and sold for approximately $202.25 million. You should take into consideration that a falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
- 30 day high of the LEN stock price was $66.28 and low was $55.21.
- 90 day high was $66.28 and low was $55.10.
- 52 week high for Lennar Corporation - $66.28 and low - $43.22.
Lennar Corporation has broken the horizontal trend up. Breaks like this are often followed by swift and strong movements, and any correction down to the breakline at approximately. $60.52 is considered to be a "second chance" to hit a potential runner. It is, however, important that volume does follow the price as false breaks may appear and it may move back into the horizontal trend. Based on the rectangle-formation theory the stock is predicted to reach $65.95 sometime during the next 3 months.
Lennar Corporation holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down there will be some support from the lines at $63.14 and $58.68. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday December 19, 2019, which indicates further gains until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.
Relative Strength Index (RSI)
RSImin/max Values: [ 25 - 75 ]
RSI14 is 92 and the stock is extremely overbought on RSI14, but may also ontinue to gain. Some stocks see their best performance while being overbought, but very seldom does RSI remain so high for a long time without short corrections. Risk has therefore increased and larger daily movements can be expected for the next couple of days.
* Stockinvest.us uses dynamical calculated RSI max/min levels to determine when stock is oversold or overbought based on historical behaviour.
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at $59.72 and $58.05.
There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Lennar Corporation finds support just below today's level at $59.72. If this is broken, then the next support from accumulated volume will be at $58.05 and $57.59.
This stock may move much during a day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $1.34 between high and low, or 2.06%. For the last week, the stock has had a daily average volatility of 2.18%.
The stock is extremely overbought on RSI14 (92). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.
Our recommended stop-loss: $62.56 (-4.88%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 92 and this increases the risk substantially. There is a buy signal from pivot bottom found 21 days ago.)
2.18 %Average volatility
Very Low Low Medium High Very High
Lennar Corporation holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as hold candidate (hold or accumulate) in this position whilst awaiting further development.
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