Trade Idea LEN (Short)

 LEN has been in a downtrend channel for nearly 5 month, characterized by false breaks above and below the channel before reversals. Yesterday LEN broke above local resistance possibly setting up a false break out.

 Here's what 3C (15 min) looked like on the move yesterday, it was negatively divergent. Today the break back below that local resistance is another signal that yesterday may very well have been the often seen false breakout before a reversal (to the downside) begins.

 The hourly 50 ema has provided decent support to LEN, it's now broken, although there's commonly volatility around these support resistance areas after an initial break.

Several entries could be set up depending on your trading style and risk appetite. A break below the consolidation triangle around $18.30 could be an entry, for those wanting a higher probability trade and willing to take on a wider stop, the break back into the channel would be very high probability around $17.50. I would prefer a stop above yesterday's high if I were to enter in this area, if I were to enter on a break back into the downtrend channel, I'd have a stop just above the downtrend line, maybe around $17.80. Should LEN enter the downtrend channel, it's likely that it will quickly shoot to the bottom of that channel around $15.75.