CSL Chart, page-314

Not many charts on this chart thread!

 

“Where is this heading???” – A good question.

 

If you listen to the Brokers and Analysts, the general feeling is that long term CSL will go up. Short term the stock is getting back into what they call the good value area, although they really don’t know how far further down the “good value area” may extend.

 

If you want to try and make some sense out of the current price action, have a look at the chart. My cycle-momentum daily chart for CSL with data as at 2pm today, is shown below.

 

 

The CSL SP has fallen back to the $176.90 level. This move has occurred in what we should see as being a terrible overall market both overseas and in Australia.  The relatively high volume trading day Close levels are still having a significant effect on price action, i.e. they represent significant support and resistance levels.  The most recent relatively high volume Close level was from the small range bar (candle) of 26/10 which closed at $176.90, effectively creating the current Anchor Zone Close level.  Someone came into the market with high demand on that day.  The buyer had decided that this level was low enough in the god value area to warrant a big buy.  This level is now being tested on reduced volume, which is another good sign.

Will this level prove to be the low of the good value area?  Only time will tell, but one thing to remember is to watch this level closely as the price and volume action around this level will give you a clue as to the conviction of the Buyers who came in back on 26/10.

 

All IMO of course – Good luck everyone.