CSL posted a net profit of $1.73 billion for the year ended June 30, roughly in line with an estimate of $1.72 billion. The company's forecast was $1.68 billion to $1.71 billion. The global pharma firm also announced a final dividend of $0.93 per share, compared to the $0.72 per share paid last year.
OP is an outside period, OPd is a down close bar. In the development of the bar, at one point the buyers are on the right side of the market move as it makes a higher high from the previous bar. Then as the bar makes a lower low the sellers are on the right side of the move. A time of confusion! An OP is often referred to as an Outside range.
The Daily chart of CSL shows a clear price divergence with the Relative Strength Indicator playing out following the rejection candle set on the 3rd of September.
The last resistance breakout level is shown at $205, a valid observation in Technical Analysis is the retest of breakout levels, in this case $205.
In calling CSL as a short trade proposition, the first clear observation is, this is being made against the primary UP trend.
The weekly chart shows the current (last) candle as an outside period down close, OPd, the range is higher than last week and also lower than last week. These type of outside range bars or candles have a high statistical outcome for marking the high in price, with lower prices to follow.
A resistance retest is the price target at $205 for a short position.
This is a retracement type of trade and can easily reverse back into the primary UP trend.
Relative strength divergence is observed with the RSI currently moving lower as upward momentum is lost.
A short position would incur a STOP LOSS set at $232.00.
