Friday, June 2, 2017

Stocks to Watch: Lennar Corp. $LEN

Lennar Corp. ($LEN), $53.68.

In a November 2016 post, I analyzed how attractive it was to invest (not to trade) in Lennar Corp. LEN, given the post-Trump situation that was coming. Time gives me the right, the construction firm continues its progress supported not only in the environment but in its soundness and good accounting numbers.

Technically it is observed that, since April, its chart entered in a distribution cycle (pressure to sell, low volume, significant resistance at $53.50), with the stock in a lateral range that has allowed him to form a clear inverse head-and-shoulder , one of the most bullish figures known. Today closed +1.84% overcoming that resistance of 3 months. It can be said that today he entered the 'action' stage of a breakout. Subtract the confirmation of the same (reaction and resolution) in the coming days.

Conclusion: if you invested, as me, in LEN in November 2016, keep more time your shares. If you want to invest from now, wait the following days that a false breakout is not formed under $53.50. The confirmed improvement of this level will be the signal to invest long in this company.

From the notice in this blog (yellow circle) with the stock at $ 43.50 the advance has been solid and the inverse head-and-shoulder breaking the resistance is auspicious. I'm still bullish in LEN.