Lennar (LEN) is the largest homebuilder in the United States. The company recently reported its third quarter financial results beating analyst expectations in both earnings and revenue. Len has benefited from cost cutting and higher demand for new homes due to declining mortgage rates.
Take a look at the 1-year chart of Lennar (LEN) below with added notations…
Chart of LEN provided by TradingView
Over the past couple of months, LEN had hit resistance at the $80 level (green) on multiple occasions. Now that the stock has broken above that resistance, higher prices should follow, and $80 will likely become a new support.
The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A failure to hold $80 could negate the expectations for a higher move.
Have a good trading day!
Christian Tharp, CMT