Mid-Cap

Momentum Model Portfolio Rebalancing:  EXIT (ASX: APE) and ENTRY (ASX: LLC)

May 12, 2023 | Team Kalkine
Momentum Model Portfolio Rebalancing:  EXIT (ASX: APE) and ENTRY (ASX: LLC)

Company Overview: Eagers Automotive Limited (ASX: APE) is engaged in the sales of new and used motor vehicles, the distribution and sale of parts, accessories and car care products, the repair and servicing of vehicles, the provision of extended warranties and the ownership of property and investments. LendLease Group (ASX: LLC) is an Australia-based integrated real estate and investment company. The Company operates through three segments: Development, Construction, and Investment.

Exit Case: Eagers Automotive Limited 

APE has been a part of the 'Momentum Model Portfolio' since March 20, 2023 (portfolio start date), and currently, the prices are facing stiff resistance around AUD 14.875 level. Therefore, an 'Exit' stance from the Momentum Model Portfolio is recommended on the stock at the closing price of AUD 14.59 as on May 12, 2023.

APE’s Daily Chart

New Entry Case: LendLease Group

Technical Analysis: On the daily chart, LLC's prices recently broke a symmetrical triangle pattern by an upside and are trading around the upper band of the pattern, indicating the possibility of a further upside movement hereon. Moreover, the prices are moving above the trend-following indicators 21-period and 50-period SMAs, further supporting a positive bias. The leading indicator RSI (14-period) is trading in positive territory with a reading of 66.81.

LLC is recommended as a new entry in the 'Momentum Model Portfolio' as on May 12, 2023. Considering the technical analysis, support and resistance levels, an 'Entry' is recommended in the 'Momentum Model Portfolio' at the closing market price of AUD 8.16 as on May 12, 2023. LendLease Group (ASX: LLC) was last covered in a report dated '12 January 2023'.

LLC Daily Chart

Support and Resistance Summary (As on May 12, 2023)

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency as of May 12, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings.

Disclaimer

This information should not be relied upon as personal financial advice by Kalkine on (i) the stocks or (ii) the use or suitability of the model portfolios. Only an investor knows about their circumstances to make an investment decision.

Model Portfolio has been prepared for illustrative purpose only and does not take into account the objectives, financial situation or needs of any particular investor. Accordingly, investors should, before acting on the information, consider its appropriateness, having regard to their objectives, financial situation and needs. Past performance is not necessarily indicative of future performance results. Actual investment returns will vary, and the value of investments can go up or down.


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