Renewed Momentum For CSL Shares

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

The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

Michael Gable of Fairmont Equities suggests CSL shares have found a bottom and seem destined for $300-plus yet again.

By Michael Gable 

In our report last week, we identified an imminent upside break in the S&P/ASX200 Index, which did result in the index going on to make new highs. We gave back some of those gains yesterday, but the US markets continue their melt-up.

This means we still hold the view that, technically, the market is still in an uptrend. Under the surface, however, we have been talking more in recent reports about commodities bottoming out and making some positive moves.

This makes sense because as the rally broadens out and rate cuts come into play, you would expect movement into “value” stocks and small caps.

Resource stocks tend to represent value, although there are also other reasons why they would be going up.

We have been looking at gold, silver, lithium, uranium, etc. This rotation into commodities, from our perspective, continues to take form.

We are also observing a movement back into the health care sector.

Today, we offer a technical view on CSL ((CSL)).

CSL shares have essentially traded sideways for the past five years. In the short-term, CSL has bottomed out near the lows of this sideways range and is starting to turn higher again.

CSL is a buy here for those happy to run a stop back near $230. We expect a recovery back up to levels over $300 before we reassess.

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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