Lennar B Surges 5.6% As Bullish Technicals Signal Strong Recovery

Lennar B (LEN.B) rallied 5.61% to close at $129.90 on August 22, 2025, recovering sharply from the prior session's pullback.
Candlestick Theory
The recent price action reveals a Bullish Engulfing pattern formed on August 22nd ($123.43 low to $131.03 high), as the session’s body fully eclipsed the previous day’s bearish candle. This reversal signal coincides with key support near $123.50, which defended the price floor during the August 21st decline. Resistance emerges at the $131.03 swing high from the recent session, aligned with the $130 psychological barrier. Failure to breach this ceiling prompted profit-taking on August 20th, where a long upper wick indicated rejection near $129.
Moving Average Theory
The 50-day MA ($121.80) crossed above the 100-day MA ($117.50) in early August, confirming a bullish near-term trend shift. Current price action holds firmly above both averages, reflecting underlying strength. The 200-day MA ($110.40) continues its upward slope, underscoring the dominant long-term uptrend. Golden crosses between shorter and longer MAs have consistently preceded rallies, including the 17% advance from August lows. Sustained trade above the 50-day average suggests ongoing bullish momentum.
MACD & KDJ Indicators
The MACD histogram has been positive since early August, with the MACD line maintaining its position above the signal line. This alignment signals persistent upward momentum despite recent volatility. KDJ readings show the %K (82) and %D (78) converging near overbought territory after peaking above 90 during the August rally. While elevated, neither oscillator yet shows bearish divergence—price and momentum remain synchronized. The KDJ retreat from overbought levels in mid-August provided a healthy reset before the latest leg higher.
Bollinger Bands
The bands contracted notably in late July (width narrowing to $4.50 from $6.80), preceding the explosive August breakout. Recent expansion resumed as volatility returned, with price pressing against the upper band ($131.50) during the August 22nd surge before settling just below it. This positioning signals bullish pressure, though the band’s upward slope must be sustained to validate continuation. Support aligns with the 20-day moving average (mid-band, $124), which bolstered prices during the August 14th pullback.
Volume-Price Relationship
Volume surged 90% during the August 22nd advance, decisively confirming the bullish reversal with accumulation intensity unseen since early July. This contrasts with the distribution pattern on August 20th, where a 3.12% decline occurred on elevated volume—indicating transient capitulation. The volume-weighted average price (VWAP) since the August low sits near $120, reinforcing that area as a demand zone. Upthrusts consistently attract higher volume, validating breakout sustainability.
Relative Strength Index (RSI)
The 14-day RSI (64) retreated from overbought territory (73 on August 13th) during the consolidation phase, providing a healthy reset. While it remains below the overbought threshold (>70), the indicator’s ability to stabilize above 50 during pullbacks highlights underlying strength. This divergence warning from mid-August resolved bullishly as price rebounded ahead of RSI, avoiding negative divergence. The current reading suggests moderate upside capacity remains before overbought concerns emerge.
Fibonacci Retracement
Using the swing low of $113.91 (August 11th) and high of $131.03 (August 22nd), key retracement levels are identified. The 61.8% level at $120.50 underpinned the mid-August pullback, while the 38.2% level ($124.50) contained the most recent consolidation. This zone between $120.50 and $124.50 now serves as critical support, supported by volume confluence and the 50-day moving average. A sustained break above the 100% extension ($131.03) would open upside toward the 127.2% level at $135.60.
Confluence and Divergence Notes
Confluence exists between Fibonacci support ($120.50), the 100-day moving average ($117.50), and the volume node near $119—forming a high-probability demand zone. Bullish alignment emerges as MACD momentum, volume surges, and candlestick reversals converge near key moving averages. No material divergences currently exist between price and oscillators, though proximity to Fibonacci resistance ($131.03) and the upper Bollinger Band warrants vigilance for short-term consolidation if this barrier holds.