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

Likes

“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.”

Dislikes

“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.”

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