Lennar B Shares Plunge 7.4% In 3 Days As Bearish Signals Intensify

Lennar B (LEN.B) concluded the latest session at $102.58, marking a 4.47% decline and extending its losing streak to three consecutive days, with a cumulative 7.41% drop during this period. This acceleration in selling pressure warrants a multi-dimensional technical assessment.
Candlestick Theory
The recent price action displays a bearish pattern sequence. The July 10th session formed a near-doji candle at $110.79 after testing resistance near $113, signaling indecision after a rally. This was followed by three successive bearish candles with progressively lower closes ($108.77, $107.38, $102.58), confirming distribution. The July 15th candle closed at its low ($102.58), demonstrating persistent selling momentum. Key support now converges at the $100.57–$101.34 zone (June 20th and 17th lows), while resistance is established between $108.12 (July 15th high) and $110.79 (July 10th close). A breakdown below $100.57 would signal capitulation risk.
Moving Average Theory
The moving averages confirm a bearish structural shift. The 50-day MA (approximately $112) crossed below the 100-day MA (near $117) in early June, creating a "death cross" configuration. The 200-day MA (around $125) caps all rallies from above. Price currently trades 11% below the 50-day MA, demonstrating severe near-term weakness. This alignment—where price sits below all three key moving averages (50/100/200)—reinforces a sustained downtrend. The widening gap between shorter and longer-term averages indicates accelerating downside momentum.
MACD & KDJ Indicators
MACD lines (12/26/9) reside deep in negative territory with the histogram expanding downward, reflecting strengthening bearish momentum. Concurrently, the KDJ oscillator shows the %K line at 15 and %D at 22, both in oversold territory but lacking a bullish crossover. While KDJ’s sub-20 reading suggests exhaustion, MACD’s persistent negative divergence implies any rebound attempt may be short-lived without volume confirmation. This divergence between oversold signals (KDJ) and unabated downward momentum (MACD) warrants caution against premature long entries.
Bollinger Bands
Bollinger Bands (20-day, ±2σ) have expanded sharply during the three-day selloff, with price piercing the lower band ($103.50 approximation) on July 15th. This deviation typically precedes mean-reversion bounces, but the expanding bandwidth indicates volatility breakout continuation. The close below the lower band—only the second occurrence in three months—suggests an oversold extreme, though sustained breaches can precede "walking the band" scenarios. A recovery above $105 would signal stabilization, while failure to reclaim the lower band may trigger another leg down.
Volume-Price Relationship
Volume trends validate recent bearishness. The July 10th rally to $110.79 occurred on elevated volume (47,333 shares), but subsequent declines saw volume expansion—23,479 shares on July 14th and 26,990 on July 15th—confirming distribution. The three-day selloff volume aggregate represents a 20% increase over the prior three sessions, demonstrating conviction. However, absence of panic-volume spikes (relative to February’s 266k capitulation) suggests sellers retain control without exhaustion. Sustained recovery would require volume exceeding 50,000 shares on an up day.
Relative Strength Index (RSI)
The 14-day RSI reads 28.3, entering oversold territory (<30) for the first time since June 2025. While this hints at short-term exhaustion, similar oversold readings in April and June preceded only transient bounces before resuming downtrends. RSI divergence is absent, as new price lows align with lower RSI troughs. Given its lagging nature during strong trends, the sub-30 RSI may signal tactical oversold conditions but remains insufficient as a standalone reversal indicator amidst pervasive bearish structure.
Fibonacci Retracement
Applying Fibonacci to the major downtrend from the October 2024 peak ($175.95) to June 2025 low ($100.57) shows critical levels. The 23.6% retracement ($118.50) capped April’s recovery attempt, and the 38.2% level ($128.50) aligns with the 200-day MA resistance. Current price approaches the 100% projection ($100.57) with the 127.2% extension at $92.50 serving as next potential support. Confluence exists near $101 (psychological level + June low), making this a decisive battleground. Failure here opens the path toward $92.50.
Confluence and Divergence
Multiple indicators converge at the $100.57–$102.58 support zone: Bollinger Band breach extremity, RSI oversold signal, and Fibonacci 100% projection. However, MACD’s unresolved bearish momentum and volume-confirmed distribution create a high-probability bias toward breakdowns below $100.57. Key divergence exists between oversold oscillators (RSI/KDJ) and trend-confirming tools (MACD/moving averages), favoring trend continuity over reversal signals. Should Lennar B stabilize above $100.57, resistance begins at $105 (recent consolidation low) and strengthens near $108.12.