Opportunity in CSL

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

By Michael Gable 

The US market taking a breather has seen the Australian share market back to where it was a week ago, with the sideways trading range for our market continuing for a little while longer. Beneath the surface though, we have been seeing a rotation into more "old world" stocks. In today's world of limited attention spans, it will be interesting to see how long that lasts, but we have noticed some good support here for sectors such as Materials.

Last week we also mentioned that the travel sector was showing some nice buying support and we believe that current levels are an opportunity to consider buying. Whereas Qantas Airways (QAN) and Sydney Airport (SYD) are the more obvious names, for the short-term at least we can see some significant upside here in Flight Centre Travel Group (FLT) and Webjet (WEB).

In today's report we take a look at CSL ((CSL)).

CSL has held up better than the overall market since the start of the year, but it has under-performed in the last few months. However, the longer-term chart is still in an uptrend. In terms of the short term, we can see that after bouncing strongly in April, it then eased back to retest the March lows. That downtrend from April – August was then broken when CSL jumped above the diagonal blue line on the back of a strong full year result. The shares have drifted back again towards the breakout zone, so this is where we are likely to see support come back into CSL. These are the levels where it is worth buying CSL, however at the moment it doesn't look like the share price is in a hurry to go anywhere.

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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