CSL: Buy Trigger Ahead

Technicals | Apr 26 2022

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

By Michael Gable 

The S&P 500 Index has been falling for the past four weeks, but last night's reversal off the lows came right at the sort of levels where it needs to rally from in order to form the "inverse head and shoulders" that we spoke about a couple of weeks ago. An inverse head and shoulders would be a bullish sign.

We won't know for sure that we have one until we push well beyond 4600, but how it reacts in the next few days will give us some clues as to the likelihood of that happening.

In the meantime, we have some potential opportunities in today's research. We have a chart on CSL Limited ((CSL)),

CSL's share price is at the same level that it was at the end of 2019 and it has effectively been trading in a sideways range since then. In February it bounced off bottom of the range and then traded sideways. However, it appears to be getting ready to break out of this small range and that should lead to further recovery up to higher levels. A push above about $275 would be the buy trigger, in our opinion.

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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CSL

For more info SHARE ANALYSIS: CSL - CSL LIMITED