Homebuilder Lennar Corp. (LEN) is scheduled to report its latest quarterly earnings numbers after the close of trading Wednesday. Housing stocks have suffered from the headwinds of supply-chain issues and higher costs for lumber as well as soaring mortgage rates. Let's check the charts to see if the worst is behind us or there is more risk ahead.
In the daily bar chart of LEN, below, we can see that the shares declined to a June low followed by a rally to the underside of the declining 200-day moving average line. The 50-day moving average line is pointed down and prices are below this shorter indicator.
The On-Balance-Volume (OBV) line also declined to a June low but its recovery has been "uneven." The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but is close to a cover shorts buy signal.