Lendlease Group (ASX:LLC) Leads New Melbourne Metro

Lendlease Group (ASX:LLC) Leads New Melbourne Metro

Lendlease Group (ASX:LLC) Leads New Melbourne Metro

  • Lendlease to lead new Melbourne Metro
  • The construction and finance giants chosen to build the now dumped East West Link will take the reigns of Melbourne’s new $11 billion rail tunnel, the state government has announced.
  • Premier Daniel Andrews on Sunday said that a consortium led by Lendlease Engineering, John Holland, Bouygues Construction and Capella Capital, had won the extensive competive tender process.
  • Mr Andrews said the consortium, which has been awarded $6 billion in contracts for the project, offered the best designs and met the government’s local content targets.
  • “We set a local content target in excess of 80 per cent, and under this preferred bid it will be 85 cents in every dollar for local firms,” the premier told reporters in Melbourne on Sunday.

Lend Lease Group is an integrated international property and infrastructure company. The Company consists of Lend Lease Corporation Limited and its controlled entities, including Lend Lease Trust. Its segments include Property Development, Infrastructure Development, Construction and Investment Management. It is engaged in designing, developing, constructing, funding, owning, co-investing in, operating and managing property and infrastructure assets. The Property Development business involves the development of inner and outer urban developments, apartments, commercial offices, retail centers, healthcare facilities and retirement villages. The Infrastructure Development business arranges, manages and invests in public private partnership projects. The Construction business involves project management, building, engineering and construction services. The Investment Management business involves property and infrastructure investment management, property management and asset management.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 16.01.

The projected upper bound is: 17.97.

The projected lower bound is: 16.75.

The projected closing price is: 17.36.

LEND LEASE STAPL closed up 0.050 at 17.350. Volume was 7% above average (neutral) and Bollinger Bands were 44% wider than normal.

Open        High         Low          Close         Volume
17.360      17.440      17.275      17.350      1,796,534

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period       50-period      200-period
Close:                       16.95               16.55              15.02
Volatility:                34                    23                   23
Volume:                  2,388,784      1,775,730      1,705,796

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

LEND LEASE STAPL is currently 15.5% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of LLC.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on LLC.AX and have had this outlook for the last 11 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 68.2926. This is not an overbought or oversold reading. The last signal was a sell 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 61.62. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 51 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 136.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 11 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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