CSL Ltd (ASX: CSL) shares are climbing again on Monday, with the healthcare giant continuing its strong rebound.
The CSL share price is up 1.29% to $177.85 in early afternoon trade after reaching an intraday high of $178.42.
That puts the stock right back near an area I've been watching closely on the chart.
CSL shares have now almost doubled from their 2026 low of $90, so a lot of the recovery has already happened.
And from a technical point of view, I think the next few dollars could be harder to come by.
Image source: Getty Images
Why $180 is a big level
The first thing that jumps out to me on the chart is the resistance sitting just below $180.
CSL shares have pushed into this area a few times recently, but so far haven't been able to break through it.
And momentum is starting to look pretty stretched as well.
The relative strength index (RSI) is currently at 68, which is getting close to the 70 level generally considered overbought.
It doesn't mean the share price has to fall from here, but I wouldn't be surprised to see some selling around $180.
I think CSL may need another positive announcement or a decent market rally to properly break through this level.
If it can, the next major resistance level I'm watching on the chart is around $230.
Another risk is coming next week
There's also another reason I wouldn't be surprised to see CSL shares struggle around these levels.
The RBA meets again on 29 September, and another interest rate increase is looking increasingly likely.
According to Reuters, markets are now implying a 93% chance that the cash rate will rise from 4.35% to 4.60% at next week's meeting.
That follows 3 rate hikes already this year, while RBA Governor Michele Bullock said last week that some of the upside risks to inflation were starting to materialise.
If the RBA does lift rates again, I wouldn't be surprised to see some pressure come back into the ASX.
And with CSL already trading right around resistance, that could make breaking through $180 even harder.
Foolish takeaway
If I were looking at CSL today, I wouldn't be rushing to chase the shares at $178.
The stock has already done a lot of the heavy lifting, and I'd rather see what happens around $180 before getting too excited.
A clean break above that level would be a much better signal to me than buying right underneath it.
For now, I'll happily wait and see whether a pullback gives me a better entry point.
