Looking for resistance on the chart in the current correction, I have calculated that $137.03 is the 38.2% rebound from what may very well be the 4th wave of A. I interpret the 3rd wave as being $145.00 to $132.10 ($12.90).
If I am correct in the wave count to date then I would assume a 5th wave, which is often 38.2% of the entire 5 waves, is likely to end at $128.85.
Projecting further, a five-wave sequence should confirm that it is the A wave of the correction. At this point in time, a B wave could be estimated as being 61.8% of the A wave ($145.24 - $128.85 or $16.39 in total) which would mean a target of $138.98.
Estimating even further in time, purely as a road map, the C wave could be equal to the A wave which would make the bottom of the correction $138.98 - $16.39 = $122.59.
The above is simply an estimated calculation of what could possibly occur. I now have a final target of $122.59 which can be adjusted as the waves unfold. At least it should give you some idea of what to expect instead of complete guesswork.
CBA Price at posting:
$135.63 Sentiment: Hold Disclosure: Held
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