A Homebuilder Bust-Out? (LEN)

by | Jan 30, 2024

We’ve talked about it many times before.

What do momentum break-out traders love most?

They love a stock that’s shown strong momentum but has temporarily stalled and gone sideways in a tight channel.

The previous momentum means the stock is strong.

The tight channel means it’s gathering up energy.

A breakout to the upside after this sort of action can be very powerful.

And we see this right now in Lennar (LEN).

Here’s the chart:

A break above $156.01 could lead to a big move.

We’ll keep an eye on it.

 

Happy trading,

— Scott Welsh

P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.

WRITTEN BY<br>Scott Welsh

WRITTEN BY
Scott Welsh

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