Swing Trade Idea (LEN) – June 30, 2021
Our bullish trade for Wednesday, June 30th is Lennar Corp (LEN). LEN is part of the Discretionary Sector (XLY). XLY has experienced a 3.2% gain in the last month as rotation into XLY continues.
LEN has recently broken above the 100 D MA and has retested this level. Price is also forming an inverted head and shoulders pattern on the daily timeframe. It’s 1M and 6M trends turned bullish yesterday. With a technical score of 8 (out of 10), LEN is a strong stock that will likely move higher.
As a close, if LEN were to trade below $96 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $4.50.