Technical outlook – Viewing the shares to Lendlease Group it is assessed that the bullish trek since established in mid-March 2020 may soon come to an abrupt end.
Bearish divergence is evident.
Traders can take advantage of divergence by using a variety of trend-based strategies.
Divergence is probably one of my favourite trading signals because they are dynamic and most often offer a reliable, high-quality trading signal reversal when combined with other trading tools and concepts.
In technical analysis, divergence can be a significant warning signal that a bullish or bearish trend is coming near to an end.
Divergence appears when a technical indicator (oscillator) begins to establish a trend that disagrees with the actual price movement.
These “disagreements” are strong signals and somewhat useful for the trader/investor.
Bullish divergence occurs when the price of an asset makes a new low while the indicator starts to climb.
Bearish divergence happens when the price of the asset reaches a new high, but the indicator fails to do the same and instead closes lower than the previous high.
Therefore, it is assessed a move back to the $11.50-55 is imminent.
Failing to stage a rebound from here should trigger another round of bearish movement to a potential target of $11.00-10. Reassess from there.
Company Overview – Lendlease Group is an international property and infrastructure group with operations in Australia, Asia, Europe and the Americas.
LLC’s integrated business model comprises the operating segments of Development, Construction and Investments. Former Names: Lend Lease Corporation Limited (LLC) on 12/11/2009; Lend Lease Group (LLC), 26/11/2015.