len

Following KBH’s big earnings inspired move LEN joined in on the fun.  LEN closed with a 4.8% post earnings surge on Tuesday.  The stock moved past its July and August highs with a huge upside gap before finishing the session at its best levels of the year.  LEN is bumping up against very heavy supply just below $56.50.  The stock topped out in this area at its 2007 and 2015 highs.  Some consolidation may be needed before LEN can convincingly blow past $57.00.  Initial support is on place from $54.85 to $53.55.  This key area marks the July, August and September highs.  We consider LEN a buy on weakness.  A close back below $52.00 would indicate a more drawn out consolidation is ahead before the 2007 peak can be cleared.

At time of publication we were long LEN in some of our managed accounts.