Trading Idea: - Is Lennar close to Resistance?

Published on Thursday, 17 May 2012 08:52 Written by TradersHuddle Wire

New York, May 17th (TradersHuddle.com) - Shares of Lennar Corporation (NYSE:LEN) are trading very close to calculated resistance at $29.40. The stock ended the trading session at just $29.27, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $26.83 and by the resistance level at $29.40; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Lennar. However, as the stock pulls back towards $26.83 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $29.40 then traders will get an opportunity to enter the stock as it moves to a higher range.