Homebuilder Lennar Corp. (LEN) has been moving higher since June ignoring higher mortgage rates and other headwinds. Let's check the charts and indicators as share prices challenge their December 2021 highs.
In this daily bar chart of LEN, below, I can see a positive picture. Prices are in a longer-term uptrend with LEN trading above the rising 50-day moving average line and above the rising 200-day moving average line. The daily On-Balance-Volume (OBV) line has been in an upward trend telling me that buyers of LEN are more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line, but could cross to the downside for a take-profit sell signal.
In this weekly Japanese candlestick chart of LEN, below, I see a mixed picture. Prices are in a longer-term rise and trade above the positively sloped 40-week moving average line. The weekly OBV line shows a rise from November. The MACD oscillator is bullish. The two most recent candles show upper shadows suggesting that traders are rejecting the highs. A close above these upper shadows will refresh the uptrend.
In this daily Point and Figure chart of LEN, below, I can see a potential upside price target in the $156 area.
In this weekly Point and Figure chart of LEN, below, I can see a price target in the $160 area.
Bottom line strategy: The American dream must still be alive and well, because the charts of LEN are pointed higher. Approach from the long side risking to $107. The $160 area is the price target.
