Technicals | Jul 12 2011
By Rudi Filapek-Vandyck
The TechWizard confessed yesterday he had been keeping a close eye on CSL ((CSL)) shares, as his gutfeel was telling him support was likely not strong enough to keep the shares in the mid-30s. It turns out, the Wizard's gutfeel was correct.
CSL shares have joined the broader market in a pronounced sell-off this week and from a technical point of view, the shares have now broken below the 20 moving average (M/A). This, predicts the Wizard, will simply attract more selling.
The Wizard believes a retest of the low point at $30.57 is not out of the question. He reports only a weekly close back above $33 will turn the M/A bullish and reduce the selling pressure.
The TechWizard has informed us he at present does not own any shares in the company.
The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au. All views expressed are the TechWizard's, not FNArena's (see our disclaimer).
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
