Lennar (LEN) has been on the defensive since July, when prices barely eked out slight new highs for the move up from the February low. A close below the chart support around $43 looks likely, as our indicators are pointed lower.
In this daily chart of LEN, above, we can see that prices since July have been making lower lows and lower highs -- the simple definition of a downtrend. LEN is below the declining 50-day simple moving average line and below the declining 200-day average.
Now look at the On-Balance-Volume (OBV) line in the middle panel: it's been in a downtrend for the past 12 months. The OBV line shows only modest improvement in February and March, which suggests that sellers of LEN have been more aggressive than buyers.
The daily Moving Average Convergence Divergence (MACD) oscillator is currently pointed down and below the zero line, for an outright sell signal. LEN has bounced off the $43 level in May and July, but this time it may not be so lucky.
In this three-year weekly chart of LEN, above, we can see that the 40-week moving average line has been pointed down since late 2015. Prices are currently below this line.
The weekly OBV line looks like it peaked a year ago, and the weekly MACD oscillator is in sell mode, declining below the zero line. A close below $43 is likely to generate further declines to the $40 area in the weeks ahead.