reversal or breakout of trading range ...

Hmmm... testing time for CBA which appears poised to breakout of long trading range.

It is just as likely a negative reversal could occur at this level.

CBA has issues and most of them negative.

Firstly there is little faith in David Murray as CEO who has botched implementation of major initiatives of the Board (CFS) and lacks the vision required by such a leading executive position as head of major industry pillar. He ignores continued calls to move on.

CFS has suffered as an acquired entity within the banks structure due to the above and the Market general downturn which has also raised serious questions regarding the amount paid ... leading to write-downs and the loss of wizard Chris Cuffe.

The Bank sector generally have issues regarding drought, real estate lending and personal debt levels.

Some believe CBA has been oversold somewhat more than it's peers who have suffered due to general economic/war factors in recent times and now might be playing catch-up.

Chart shows major resistence at $27.85 just ahead of Fib(38.2%) at $27.60 .. both important levels and no doubt to be retested next week.

The RSI has triggered and consolidation demonstrates convergence signalling a possible reversal.

Those LONG should prepare to take profits.

Chart looks like this...


Cheers ... tight stops.


This is only my view ... read the red stuff.