I am still hear, haven't gone anywhere. I have been reading a lot of drivel in the previous posts.
I will try to explain what I believe is happening & will happen to the share price.
The share price has not set a new high for the past 15 days. The $161.37 peak, the latest, is the third attempt for the market to continue to climb. Each peak has been met with selling pressure & the price has retreated. The reason appears obvious. The share price of CBA has nowhere to go. It may sneak up to a new high & it will again be met with selling pressure. The yield is too low & eventually many shareholders will realise that there will be negligible capital gains & they are holding a non-performing stock. This means it will be uneconomical to hold a stock that is under-performing. The peaks in the share price will tend to be lower as more shareholders bail out.
It has been 44 days since the $160.27 peak on November 25 & the share price has now closed at $160.61, an increase of 34 cents. That is 0.21% or about 2.5% per annum. That sounds almost reasonable until you realise the share price is near its next peak & that 34 cents will evaporate. That will mean no capital gain & it will become a capital loss. The yield is now less than 2.9% with a capital loss in the wind. Not that attractive is it?
CBA Price at posting:
$160.61 Sentiment: Sell Disclosure: Not Held
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