TA Update
I mentioned a couple of key levels in last post and both were taken out by bulls.
Last Friday we gapped up above the POC (almost bang on $105.50 mentioned).
Bulls then took out the neckline from the recent H & S pattern and its been onwards an upwards ever since.
However today we come to a key junction - bulls have momentum but bears look like they have some ammo to slow things up here.
Firstly lets look at a close up of the re-break above the neckline and where things currently stand.
All dMAs have been cleared and momentum trade is up.
Bulls tick
CBA Daily zoomed in
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Now if we zoom out (below) you can see the ammo bears have with the sp right up against upper resistance
And this comes at a time when the RSI is starting to get pretty damn hot.
For the run to continue bulls need that resistance to get taken out
CBA Daily zoomed out
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The other concerning thing for bulls is the movements on banks in the US.
Almost all the big banks have been under heavy fire in the last couple of sessions and Aussie banks don't seem to have got the memo - yet.
Below is CBA vs BANK and its clear that moves have been opposite over the last few sessions and with CBA trading overbought into overhead resistance it's certainly something to be aware of for those with shorter time frames.
CBA (blue) vs BANK (orange)
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As always trade safe, stay nimble and good luck whichever way you trade...
(20min delay)