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Len Stock Earning Surprise May Help Regain Long Term Channel of Lennar Chart


Lennar (Ticker Symbol: Len) is an S&P 500 home builders  stock and Company will  report earning 3/29/2016. Len stock beat last four quarter earnings and Chart also looks  strong.

Len Stock Earnings
Len Stock Earnings


Even though last 4 quarters stock beat the earning consensus every time, Stock price down 4.5 % from last year closing price. After January collapsed, Stock recovered most of its 23 % lost stock value, 3/29/2016 earning will be  important for the stock to go back its long term  weekly upward channel.

Stock weekly chart shows that stock broke its long term upward channel in December 2015 and later in January 2016 stock broke its long term support line of $ 46 to $50 area. Stock went down from its $50 price to 37.80 or 23 % in just one and an half month. However, Stock   formed W pattern in February  and  came all  the way up to the yearly high from its 23 % down position.  Stock now holding in the resistance l area of $45 to $47 range.


Len stock weekly chart

Len Stock Daily chart shows that After January and February fall down, stock retrieved most of its lose and  made a faulty W pattern in its upward movement. Stock  fill the January 4th gap of 2016  and came all the way to the 200 day moving average. Even though Stock crossed the 50 day and 100 day simple moving average and holding above both line, But failed to closed above 200 day moving average and touch the $ 50 price.


Len Stock Chart Daily
Len Stock Chart Daily

Stock is currently closed  right above the 100 day moving average and with small pull back from after fill the January 2016 gap. Stock also formed 2 consecutive Doji days in in the last two days. All the signs  indicate stock bullish  position to the daily chart and investors are confident on the stock.

But on the weekly chart stock is below the long term upward channel and below $50, this is a weakness for the chart. Stock can ignore this weakness by good earning surprise this quarter. Tomorrow stock should open above $50 to $55 range and close should above $50 price range. On the daily chart stock is holding below 200 day simple moving average, this is  $48 to $50 price range area. Stock needs to above $50 to cross and hold above 200 day simple moving average.  This is very much possible as stock beat the earning consensus last 4 quarter on average 15 % rate.

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