CSL - another defensive stock to rally

by Michael Gable

After peaking in March this year, CSL has now completed a 3-wave correction against the uptrend. At its recent low last week, we can see not only a crossing on the MACD (circled), but also some divergence on the Relative Strength Index (RSI). This divergence is indicated by the diagonal solid lines. This is where the price has gone to a new low but the RSI is already trending higher. As a result, we expect CSL to trade higher from here during the next several weeks. It should head towards the $72 region, which is about where the valuation is for CSL. Therefore this price offers an opportunity to buy into CSL, or if you are looking for an exit strategy, it pays to be patient here and wait for higher levels.

Disclaimer

Disclaimer: Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). 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.