FREE Guide: 6 Fibonacci Types that Create the Most Precise Price Levels, Targets, and Reversal Zones

July 2 Chart of the Day - Lennar

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

According to published reports, shares of Lennar (LEN) are falling after Citi downgraded the homebuilder from Buy to Neutral and slashed their price targets.

Since price recently made fresh all time highs (ATH) and faded some is the downgrade warranted or simply window dressing?

We'll take a look at their chart from a price action technical analysis perspective so you can decide for yourself.

We have featured over 220 Charts of the Day during the past year and teach Price Action Trading for FREE  to traders who join our Highly Rated Trade Room.

Monthly Chart 

Lennar monthly price action technical analysis review

On the monthly chart we can see that price recently set a fresh $172.59 all time high (ATH) a few months ago.  

Since then, price is doing what price does when that happens... chilling just below that level.

Whenever price is trading at or near all time highs like this we are often limited in the price action tools that can reliably be used to help identify potential price levels of interest.  

Namely: Fibonacci, Trend, and occasionally support/resistance in the form of a previous ATH.

Weekly Chart

Lennar weekly price action technical analysis review

On the weekly chart we can see with much more clarity price setting ATHs and fading and cycling back down towards previous structure.

We've layered in traditional support/resistance levels as well as a trend line to help identify potential price levels of interest and/or future price targets.

Only time will tell for sure what price will do next...

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.

Take a look at the charts and let us know what you think.  

We'd like to hear from you in the comments sections.

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