Approaching Resistance: Lennar

Published on Friday, 13 July 2012 07:32 Written by TradersHuddle Wire

New York, July 13th (TradersHuddle.com) - Shares of Lennar Corporation (NYSE:LEN) are trading very close to calculated resistance at $31.90. The stock ended the trading session at just $31.06, 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 $25.77 and by the resistance level at $31.90; 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 $25.77 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $31.90 then traders will get an opportunity to enter the stock as it moves to a higher range.