Ann: BEN 2017 interim financial results announcement details, page-8

@FlashInThePan Iam not talking about past performance & for those that were able to capture the stunning run up, well done.

Iam talking about future expectations based on a few technicals - RSI, MACD, Bollinger Bands & fundamentals of BEN and the broader banking sector.

BEN following the pattern of the broader banking sector, NAB was first to show this, followed by the other majors. BEN being last to the party and playing catch up today off over -4% vs the other banks BOQ -2% and the other majors off around -1.2%. Iam looking for $12.00 as first stop on the way lower and possibly $11.00 if our market was to make a move below the 5,500 mark.

The first signal to look for is the stock trading back within the bollinger band, which BEN is now doing & confirming this today. Once we see the rally or sell off trade within 'normal' trading conditions, we often see a reversion to mean. The other divergence in trading pattern to suggest that a decline is coming, is that of the RSI topping out (took its time) above the 80 level and falling away, this also coupled with the MACD crossing over, also suggests a future decline in share price.

If we want to look at the fundamentals for BEN and the broader banking sector, BEN was trading on a P/E close to 16x vs the broader banking sector at 14x and the broader market at 17x, all of these well above historical averages. Is the sector in for a sustainable re-rating? I think not. It's fair to say that the run up of the broader market and the banking sector post Trump has been quite impressive, it's now time for the fundamentals and more importantly earnings to justify this move, which I believe is highly unlikely.

Analysts have been chasing their tails trying to justify prices rallying hard for the sector, however have only made small revisions (if any) to bank earnings mainly coming off the back of their future expectations for the US cash rate / yield curve.