Hi everyone, thought i would chime in on the discussion too and...

Hi everyone,

thought i would chime in on the discussion too and offer some of my view points.

it really is one of if not the best growth stocks on the asx, but even csl needs a healthy pullback from to time. Initially I assumed we could be seeing a falling flag pattern emerging over some time, but it looks like it broke through that on friday to the downside. there was significant volume on the weekly to support further downside as the weekly bar closed right at its low.

On my chart the lines in red are the All Time High retracement using a combo of FIB and Gann levels. the blue lines represent previous pullback retracement levels from significant levels (2016-2017, then 2017-2018). what i find interesting is that the 50% level provided a strong support for this stock and afterwards the stock continued its upward trajectory.

I've also added a gann swing chart overlay to the chart on the right. the chart on the top left is the gann swing 1 month chart showing the retracement for the current month. the fact this broke through the the 50% as well suggests some short term bearishness. beneath that is the candlestick chart, and there are some bearish candles right there.

its highly possible that this stock hits the 50% retracement from its 2018 low to 2020 high, (marked in blue), which is also around the 75% of the ATH retracement and then bounces back up to continue its bull run. now if it does, based on previous price extensions, from the 2016 low (point a) to 2017 high (point b) , then point c at the 50% retracement, and apply the same principle again for the 2017-2018 low and high and 50% retracement levels, you will see that it always rose above the the 100% price extension mark. if you apply the same principle again here, should it rise from that $250 50% level this puts the stock around the $400 level at 100%. (note:- my price extensions are not marked on this chart, but you can do the maths and will come to the same calculations)

Now if it breaks through that 50% retracement level ($250-ish), then overall it could lead to more downside. However even during the strong covid crash, it opened below that 50% retracement level on the weekly and then closed 11% higher.

But my goodness.....that was some volume that went through this week, and that weekly bar was 100% bearish. I will be sitting on the sidelines for now, waiting to see what happens. and when my buy signals get triggered.....I'm all in.