short csl, page-234

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peejay2

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28/01/20

13:45

Post #: 42601794
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Originally posted by Jamieevie: ↑

You don't need to use a log chart to go back 7 years.

Here's a SOL chart going back 7 years and you can see the importance of Fib levels on the chart as well. Of course price went parabolic in 2018 for SOL as well before it corrected back to the long term trend but apparently CSL is different or something.

This stock is trading at a price premium caused by an expansion of its price earnings multiple driven by current market sentiment - not that its earnings have grown at such a level across the past year that it validates the growth in share price. December 2018 traded at a PE of 32, today trades at a PE of over 47. When market sentiment (and Fed liquidity pumping) turns again it will return to a more reasonable valuation. There's no reason to get caught up in momentum chasing a stock at this point. The chart shows that the stock is very overbought on multiple indicators (weekly RSI, weekly MACD) and showing a shortening of each upthrust similar to the last time it topped. Reults are out in a little over a fortnight and the share price has baked in growth well beyond 10% in a year - if (or should that be when) the results don't confirm the share price appreciation the stock will be subject to a mean reversion. The chart just shows how extended it is which is why I started calling it a sell from the point where it had an upthrust after encountering a preliminary level of supply. The mean reversion will either take it back to that $270 level or more likely the demand trend line around $230.

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“The chart just shows how extended it is which is why I started calling it a sell from the point where it had an upthrust after encountering a preliminary level of supply. ”

One up thrust too many for me !!!!! I too have encountered more than an oversupply of graphs.
This is too silly for words and I have hit the ignore button.
Please don’t go away mad...... just go away. !

CSL Price at posting: $312.67 Sentiment: Hold Disclosure: Held
3 Upvote

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