Swing Trade Idea (LEN) – May 25, 2023
Our bearish trade for Thursday, May 25th is Lennar Corporation (LEN). LEN is part of the Consumer Discretionary Sector, which has performed at 3.27% over the last month with LEN underperforming relative to its sector at -2.80% over the same period.
LEN is currently pulling back from a key resistance area of $116, which is on par with the previous all-time highs. As the 1M trend recently turned bearish, we believe that this trend will continue with the next support at around $100.
As a close, if LEN were to trade above $110 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also will want to consider cutting losses on this options trade if the value of the vertical spread moves below $1.53.