Lennar B's 15min chart: RSI Overbought, KDJ Death Cross, sell signal.

Lennar B's 15-minute chart exhibits an RSI reading in overbought territory, coupled with a KDJ Death Cross at 08/13/2025 16:00, indicating that the stock's price has ascended at an unusually rapid pace and has outpaced fundamental support. This suggests a shift in momentum towards a downward trajectory, with potential for further declines.

Lennar B (LEN.B) has experienced a significant surge in its stock price, with a 5.52% gain to $125.76 in the latest session, marking two consecutive days of gains and an 8.75% advance over this period. The technical indicators suggest a strong bullish momentum, but caution is advised due to overbought conditions and mixed signals.

The 14-day RSI (72.1) entered overbought territory, indicating that the stock's price has ascended at an unusually rapid pace and has outpaced fundamental support. This overbought condition was last observed before February’s 10% correction. The KDJ Death Cross at 08/13/2025 16:00 further suggests a shift in momentum towards a downward trajectory. The KDJ indicator registered overbought conditions (K:85, D:78, J:99), with the J-line above 90 historically preceding 2–5% pullbacks within three sessions.

Despite these cautionary signals, the 50-day SMA ($112.34) has crossed bullishly above the 100-day SMA ($108.12), reflecting strengthening intermediate momentum. The 200-day SMA ($118.95) remains below the current price, indicating longer-term resistance. The price is currently 5.7% above the 200-day SMA, which is a critical test of sustainability.

The volume analysis also supports the bullish sentiment, with recent gains validated by rising volume (+22% above the 20-day average). However, the volume remains 40% below the capitulation spike seen on 2025-04-09, suggesting room for accumulation. The volume-weighted average price (VWAP) since the July low is $113.20, providing dynamic support.

The Fibonacci retracement analysis places the current close at $125.76 precisely at the 78.6% retracement, a common reversal zone. A confirmed break above $126 would target the 100% extension at $130.78.

The mixed MACD-KDJ signals and divergent long-term averages imply potential consolidation before trend confirmation. The MACD histogram has been expanding for six consecutive sessions, indicating a strengthening bullish cycle. However, the RSI and KDJ overbought readings conflict with the MACD’s continued ascent, suggesting a potential for profit-taking pressure.

In conclusion, while Lennar B exhibits strong bullish momentum, the overbought conditions and mixed signals suggest a potential for consolidation and reversal. Investors should exercise caution and closely monitor the stock’s technical indicators and price action for further developments.

References:
[1] https://www.ainvest.com/news/lennar-jumps-5-52-technicals-signal-bullish-momentum-2508/