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.
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 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.
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.