Lennar Stock Jumps 3.36% as Technicals Signal Bullish Reversal Potential

Lennar (LEN) recently closed at $110.23, gaining 3.36% on June 4, 2025, marking its second consecutive daily advance with a cumulative 4.96% rise. This analysis evaluates the technical context using multiple frameworks.
Candlestick Theory
Recent price action shows a bullish reversal pattern, with June 3rd forming a hammer candle (low: $104.10, close: $106.65) followed by a strong white candle on June 4th (range: $106.82–$110.46). This sequence suggests accumulation near the $102.76–$103.00 support zone (April 16th low). Immediate resistance is observed at $110.46 (June 4th high), with a breakout potentially extending gains toward $114.26. The $102.76 level remains critical longer-term support.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit bearish sequencing (50-DMA < 100-DMA < 200-DMA), confirming the primary downtrend. Price remains below all three averages, with the 200-DMA (near $137) acting as major overhead resistance. The 50-DMA (approximately $116) aligns with short-term resistance, reinforcing bearish control. A bullish crossover of shorter-term averages would be required to signal trend reversal potential.
MACD & KDJ Indicators
The MACD histogram has turned positive in recent sessions, suggesting waning downward momentum. Concurrently, the KDJ oscillator exited oversold territory (K and D lines crossing above 20), with the %J line accelerating upward. This momentum shift aligns with the price rebound. However, both indicators remain below their midlines, warranting caution against premature trend-reversal assumptions. Bullish confirmation would require MACD crossing above its signal line while KDJ sustains above 50.
Bollinger Bands
Price rebounded from the lower Bollinger Band ($104–$105 zone) and now challenges the 20-period moving average midline (near $108). Bandwidth contracted noticeably in late May, indicating reduced volatility that preceded the current breakout. A sustained close above the midline would reinforce near-term bullish potential, while resistance near the upper band (~$116) may cap upside. Band expansion on advancing volume would strengthen bullish validity.
Volume-Price Relationship
Trading volume surged 36% to 2.72 million shares on June 4th, confirming buyer conviction behind the 3.36% price gain. This diverges positively from the lower-volume declines in late May, indicating accumulation. The volume spike suggests sustainable upward momentum, though continuation requires ongoing volume support above the 50-day average (~2.4 million shares).
Relative Strength Index (RSI)
The 14-day RSI rebounded sharply from near-oversold territory (34 on June 2nd) to 58 on June 4th, reflecting strengthening momentum. While not overbought, the rapid ascent suggests near-term consolidation risk. Historically, RSI reversals from sub-40 levels have preceded tradable bounces during this downtrend. Traders should monitor whether RSI sustains above 50 to confirm bullish momentum.
Fibonacci Retracement
Using the dominant downtrend swing from $151.47 (December 17, 2024) to $102.76 (April 16, 2025), key retracement levels are $114.26 (23.6%), $121.37 (38.2%), and $127.11 (50%). The current price sits below the 23.6% level, with $114.26 constituting immediate resistance. Confluence exists here as the 23.6% retracement aligns with the descending 50-DMA, creating a significant technical hurdle. A close above $114.26 would expose $121.37, while rejection may retest $102.76 support.
Confluence and Divergence Observations
Bullish confluence appears between the MACD/KDJ momentum turn, volume-backed price breakout, and RSI reversal. However, this opposes the bearish moving average structure and Fibonacci resistance. A notable divergence emerged in late May as price established lower lows while RSI formed a higher low, foreshadowing the current rebound. The convergence of the 23.6% Fibonacci level ($114.26) and the 50-DMA creates a high-probability resistance zone where trend decisions may occur. Bears retain advantage below $114.26, while bulls need to reclaim this level to challenge the broader downtrend.