CSL: Buy The Dip

Technicals | Jun 22 2021

This story features CSL LIMITED. For more info SHARE ANALYSIS: CSL

By Michael Gable 

There is enough market commentary out there on what inflation is doing, what short rates are doing, what longer-term rates are doing, what it means for growth stocks, cyclical stocks, resource stocks, whether the reflation trade is dead or is now back from the grave. The market seems to flip and flop from one theme to the other in such a short period of time. Was yesterday's sell-off the start of something bad and is today's expected bounce a bull trap? Or does the market just want to get on with it?

In today's report though, we have a chart on a stock which seems to be looking fairly resilient here, CSL Limited ((CSL)).

Our recent comments that CSL should continue higher have seen it meet the downtrend line that started in early 2020. Over the longer term, it still looks bullish, but over the shorter term, we may see a dip in the share price. That dip would be the next buying opportunity before it makes another run towards the old high near $340.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
 

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CHARTS

CSL

For more info SHARE ANALYSIS: CSL - CSL LIMITED