Hot stocks – chartist’s view

Print This Post A A A

This week our chartist Gary Stone of Share Wealth Systems has a property theme for both his picks.


“Lendlease Limited (LLC): After ‘liking’ Lendlease in early June in this column at $18.90, Lendlease is my ‘like’ again this week. Lendlease’s share price achieved a clear break above its 2007 high on increased traded volume last week. Over the coming weeks Lendlease is likely to challenge its all-time high of $23.13 achieved in January 1999! Lendlease’s PE Ratio of 15 is still relatively low for a stock whose share price has risen 35% over the last 6 months.”




“REA Group (REA): After a 100% run-up in 19 months, it appears that REA’s share price is set to take a breather. REA is known to have 50% and 61.8% retracements of its stellar run-ups. Indeed the retracement on the bottom left of the chart was one such 61.8% retracement of a 75% run-up. The first area of support is the $81 – $82 zone. The next support zone below that is $75 – $76, which coincides with the 38.2% retracement of $75.29. The 50% retracement coincides with the next lower support zone of $69 – $70. A clue to how far REA corrects this time around will be how its share price reacts at the first zone of $80 – $81.”

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.

Also from this edition