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.
