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Some long-term Buying opportunities

Lesley Beath  |  07 Dec 2010Text size  Decrease  Increase  |  

Page 7 of 8

Lend Lease Group (LLC)

Technical Recommendation: Accumulate

Stop/Loss: na

(Click here for LLC fundamental research and company information)


Technical View

The recovery rally peaked in September 2009 and at the August low the stock had declined by 39%. This push to new 2010 lows forms part of the basing process which has been unfolding since mid year.

LLC is now testing the 2009 downtrend and as this coincides with the 200DMA, the stock could struggle to push higher in the near term. However a new long-term Buy signal was registered in October and this suggests that a significant low has been formed: a break of resistance at $8.00 would complete the base, opening potential to $9.33.

Whilst there is scope for oscillations between approximately $7.50 and $8.00 in the near term, the stock appears low risk and an Accumulate rating is put forward.

A break below $7.50 would delay upside potential; but a break below $6.93 would be required to abort the improving profile.

 

LLC chart

(click image to enlarge)