Lennar B Jumps 7.32% In 3 Days As Technicals Signal Strong Bullish Momentum

Lennar B (LEN.B) recently demonstrated strong upward momentum, gaining 3.09% on September 5, 2025, to close at $136.14. This marked the third consecutive day of gains, culminating in a 7.32% advance over this period. The technical analysis below employs multiple methodologies to evaluate the stock’s trajectory, highlighting key confluences and potential risks.
Candlestick Theory
The last three sessions formed a robust bullish pattern known as "Three White Soldiers," characterized by progressively higher closes and bodies extending over 75% of each day’s range. This signals strong buying pressure. Immediate resistance is evident at $137.16 (today’s high), while the $136–$135 zone now acts as a pivotal support level following a decisive breakout above January’s peak of $136.03. A close above $137.16 could open a path toward $140, whereas failure to hold $135 may trigger short-term consolidation.
Moving Average Theory
Lennar B trades above all key moving averages (50-day: ≈$125, 100-day: ≈$118, 200-day: ≈$110), confirming a sustained uptrend. The 50-day MA recently crossed bullishly above both longer-term averages, solidifying the golden cross pattern observed in late August. This alignment suggests strong intermediate-term momentum, with the rising 50-day MA near $125 providing dynamic support on pullbacks. The sequence (50 > 100 > 200) reflects healthy trend architecture.
MACD & KDJ Indicators
The MACD (12,26,9) maintains a bullish posture, with the MACD line above the signal line and both trending upward above the zero line. However, the KDJ (9,3,3) signals overbought conditions, with the %K line exceeding 90—driven by the recent parabolic surge. While MACD supports continuation, the extreme KDJ reading warns of potential near-term exhaustion. A bearish MACD crossover or KDJ reversal below 80 could precede a technical pullback.
Bollinger Bands
Volatility expanded notably during the three-day rally, pushing prices toward the upper band (20-day SMA ≈$130, standard deviation multiplier: 2). The 15% bandwidth expansion since late August reflects heightened momentum, though proximity to the upper band at ≈$138 suggests the move may be overextended. A contraction in bands or a price reversal toward the midline ($130) could signal consolidation. Such a retreat would align with mean-reversion tendencies.
Volume-Price Relationship
Volume increased during the advance, with today’s 40,432 shares traded exceeding the prior two sessions (35,461 and 33,663). This confirms bullish conviction, particularly following the 5.61% surge on August 22, which registered the highest volume (64,363) in the dataset. Sustained volume above 35,000 shares is critical to validate further gains, while a drop below 30,000 on down days would weaken the uptrend’s credibility.
Relative Strength Index (RSI)
The 14-day RSI is estimated at 76, surpassing the overbought threshold of 70. While RSI divergences were absent during the rally, this elevated reading indicates overheating relative to the past two weeks’ price action. Historically, Lennar B’s RSI has peaked above 75 before consolidating (e.g., January 2025), reinforcing the signal. Though strong trends can tolerate extended overbought conditions, this warrants vigilance for profit-taking.
Fibonacci Retracement
Applying Fibonacci levels to the rally from the August 21 low ($123.00) to today’s high ($137.16) reveals key support zones: 23.6% ($133.82), 38.2% ($131.75), and 61.8% ($128.41). These thresholds align with prior technical anchors—$133.82 converges with today’s low ($134.38), $131.75 with August’s swing high, and $128.41 with the breakout point above the August 19 resistance ($128.81). These levels offer strategic entry points during retracements.
Confluence and Divergence Observations
Confluence is pronounced: The bullish candlestick pattern, moving average alignment, MACD momentum, and volume validation collectively reinforce upside potential. Fibonacci levels further corroborate key support areas. The primary divergence lies in oscillators (RSI, KDJ) flashing overbought signals against the prevailing uptrend. This suggests near-term consolidation is probable, though not necessarily detrimental to the broader bullish structure. Traders should monitor the $135–$137 zone for breakout confirmation or reversal triggers.