Lennar Closing in to Resistance

Published on Thursday, 09 February 2012 08:40 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of Lennar Corporation (NYSE:LEN) are trading very close to calculated resistance at $23.47 with the current price action closing at just $23.37 placing the stock near levels that make it difficult to buy.

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 defined by current calculated support defined at $21.33 and by the resistance level at $23.47, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Lennar, as the stock is well above support, however, as the stock pulls back towards $21.33 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $23.47 then traders will get an opportunity to enter Lennar stock by establishing a position as the stock moves to a higher range.