Lennar Short term Bullish Reversal
Published on Friday, 06 July 2012 04:09 Written by TradersHuddle Wire
New York, July 6th (TradersHuddle.com) - Shares of Lennar Corporation (NYSE:LEN) ended the trading session higher by $0.41 or 1.32% from its previous close. Lennar's price action formed what is considered to be a bullish engulfing candle that could very well signal a continuation of trend or reversal of the ongoing weakness.
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 recent stock range was formed by a trough where calculated support was defined at $25.77 and by a peak that established the resistance level at $29.44. This range could be used by traders managing their positions.
Traders wanting to establish a position in Lennar or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk, as it shows where the bears were able to push the stock down, before the bulls step in with a bid.
The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short-term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration:
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