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A Lennar development in Broomfield, Colo.; U.S. housing data will be released Tuesday (RICK WILKING)
A Lennar development in Broomfield, Colo.; U.S. housing data will be released Tuesday (RICK WILKING)

What The Charts Say

Bullish on home builder Lennar Add to ...

Lennar Corp. (yesterday's closing price $13.04 XXXU.S.) declined from about $67 in early 2006 to $4 in November, 2008 (A-B) below a descending trendline (see dotted line) and then settled into a trading range mostly between $5 and $11 (see dashed lines). Lennar had a breakout above this range recently to signal a changing technical condition. The current pullback toward previous resistance (D - ceiling becomes floor) should provide an excellent buying opportunity. Only a decline below the 40wMA (currently at ±$11.50) would reverse the long-term up-side potential.

More Related to this Story

Point & Figure measurements provide an initial target of $19 (a 46 per cent appreciation potential from current levels). The large area of accumulation (see dashed lines) supports higher targets.

Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.

Source: www.decisionplus.ca

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