In a column Wednesday, Jim Cramer called out two homebuilders Lennar (LEN) and Toll Brothers (TOL) as long-term winners.
We reviewed the charts of TOL earlier today, so let's check out LEN.
In this daily bar chart of LEN, below, we can see that prices started climbing higher back in December. LEN is trading above the rising 50-day moving average line and above the bullish 200-day average line. The On-Balance-Volume (OBV) line is pointing higher as buyers of LEN have been acting more aggressively. The Moving Average Convergence Divergence (MACD) oscillator is above the zero-line.
In this weekly Japanese candlestick chart of LEN, below, we can see that prices are in a longer-term uptrend above the rising 40-week moving average line. Prices were weak in the June timeframe but have firmed back up in recent weeks. The weekly OBV line has been steady the past four months. The MACD oscillator is turning upward to a new outright buy signal.
In this daily Point and Figure chart of LEN, below, we can see a downside price target in the $95 area. A trade at $110.87 will be a new high on this chart and should refresh the uptrend.
In this weekly Point and Figure chart of LEN, below, we see a longer-term price target of $140.
Bottom line strategy: Traders could go long or add to existing longs on strength above $111. Risk to $99. The $140 area is our price target.
