Is Lennar Breaking Out?

Published on Thursday, 03 May 2012 09:04 Written by TradersHuddle Wire

New York, May 3rd (TradersHuddle.com) - Shares of Lennar Corporation (NYSE:LEN) closed the session at $29.02 just above calculated resistance at $28.72. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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.

The stock was trading in a well defined range with support at $24.30 and resistance at $28.72. Given that this range was broken, traders will be closely monitoring Lennar's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Lennar is still near the broken resistance level, traders will be focusing on the $28.72 level to see if the stock holds the breakout without rolling over.