CSL Chart, page-341

A rough VSA (Volume Spread Analysis) definition of “Smart Money” is as follows:

They are active at the top (selling) and at the bottom (buying) of a market.
They are generally a professional group or group of professionals acting in cohort.
They take very large positions in stocks, positions that if not managed properly would drive stock prices up or down quickly.
They keep their identity and trading activities as private and secret as possible.
They take advantage of market sentiment and market news to build large positions when their analysis indicates that the stock represents good value
They buy when the news is bad and sell when the news is good.

The fact that the large holder selling which came in after 3pm yesterday was associated with a very low range hourly bar and was met by equally large volume buying that kept the price around the 3pm level, that it occurred on the release of what the general punter would call very bad news, and was at the level where large volume buying had occurred back on 26/10, suggests to me that the publicised seller and anyone else who sold down at that level were in fact the “Dumb Money”.

The above is somewhat unintuitive, but is a way of looking at a markets price and volume action that does in fact make a lot of sense, to me anyway. The “Smart Money” aren’t always right, but any analyst familiar with the VSA principles would define the price and volume action on 26/10 and again on 20/11 as a Sign of Strength.

What would be expected now is some testing for supply at and around the $175 level. If additional supply comes in below that level then lower stock prices will follow. If this level holds on lower volume then this may very well be a new base for the CSL SP.