CSL Shares Breaking Free

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

By Michael Gable 

US markets have cooled off a little in the past week and our local market as usual has followed it lower.

It seems to have caused investors to worry about whether the upside break in the S&P/ASX200 Index is at risk.

However, we are still witnessing good support for smaller caps in the US, so any selling in larger caps is still likely to find its way into other parts of the market for now.

However, until we see our market clearly find support again, the number of opportunities right now remains limited.

Today, we share our technical view on CSL ((CSL)).

Over the past couple of years, we have noted that CSL has been trading in a very large range, as indicated by the diagonal blue lines.

The past week has seen it finally break free of this four-year trading range. If this sticks, then this could be the start of a major move.

This is because the stock has been range-bound for so long, that any reversion to the uptrend should lead to another longer-term move.

Current levels are a buy, and traders and look for an initial stop at a weekly close under $300.

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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