Are the Bears Taking Control over Lennar?

Published on Thursday, 14 June 2012 04:18 Written by TradersHuddle Wire

New York, June 14th (TradersHuddle.com) - Shares of Lennar Corporation (NYSE:LEN) ended the trading session lower by $0.92 or -3.6% from its previous close. Lennar's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Lennar Corporation (NYSE:LEN) builder of single-family attached and detached homes. The Company also provides mortgage financing, title insurance, closing services and other ancillary services.

Lennar's current stock range is determined by calculated support defined at $23.48 and by the resistance level at $27.25, which should be used by traders planning their next move.

If traders want to establish a position in Lennar, they need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal in the current price action. The Bearish engulfing pattern is a leading warning sign; therefore, traders should closely monitor Lennar for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: