CBA TA Update
CBA has an interesting set up atm with some key levels of support/resistance and chart patterns at play.
Looking at weekly timeframe first and it's clear that the descending line of old resistance has been a bit of a battle ground in recent weeks.
The sp dropped on open yesterday then managed to rally back to that key level over the course of the day.
A positive move from here may just be what the bulls need to finally kick clear.
US stocks sold off overnight however bank stocks faired well all things considered, so really could go either way today.
If the test on resistance fails then I'd imagine the sp will make a beeline for most traded price up here of $99.54.
The are some key MAs around this same level and as you'll see soon, certainly is a price/zone of significance.
CBA Weekly
Looking now at daily timeframe and CBA has set itself up with a classic H & S reversal pattern.
A break lower is expected and if this were to play out the technical target would be - you guessed it $99.54!
Obviously if price holds above current support then the pattern is invalid but it's one to watch
(Current squeeze between weekly resistance and daily support looks like it may initiate a decent move either way)
CBA daily
Speaking of US stocks I usually look a few markets for comparison and BANK is one that CBA usually likes to follow.
It closed green overnight however has been pushing hard lower recently and this move has not yet been followed by CBA.
Time to play catch up perhaps???
BANK (blue) vs CBA (orange)
Anyway thats it from me
Trade safe, stay nimble and good luck whichever way you trade...
(20min delay)