After many bad experiences I have learned to never listen to brokers - in their eyes, everything is always going up and "cheap at these levels"!! Instead, I now watch the charts closely as I believe that the sum total of all info (and sentiment) regarding stocks is contained in their price and so price and volume are the most relaibel indicators.
With regards to CBA, I also think they are about to head down. Interesting that the stock in the past week has twice hit $27.64 and both times sold off from there immediately, suggesting that this is some important technical level. Underlying strength of this rally has significantly weakened in the past three weeks (refer to the daily volume) and CBA is due for a healthy correction before it can draw new players into the market. Interestingly, volume increased as CBA moved down from $27.90 to $26.67 and has shrunk again the past three days with its mini rally further suggesting a loss of momentum.
If it heads down today and confirms the 30th April break of its uptrend, I suspect the next stop is $26 then $25.50.
Regards,
Jaysee
CBA Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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