refer to my monthly chart in a previous post. We assume instos rebalance looking at a longer time frame. Monthly movements would be of special interest to them as they need to lock their positions in for months at a time right? They would have seen trouble brewing as the minor channel struggled for support prior to August 2017. Once the channel was breached, it is likely they saw selling pressure and would have spent the next few months rebalancing (support the SP in the mean time). From a longer term perspective larger capital would be expecting the SP to feel overextended at the lower 25 year trendline. So i think we need to get closer to the low 60s to find some real support.
The $70 line is just to obvious a demarkation line now and I think that probably strips of it of any importance. The important point is that CBA fell out of its 25 year weekly channel months ago and hasnt been able to recover. It needs to find support at the lower monthly channel IMO. I dont believe that capital will support CBA here. Why would you when you can get it a 10% discount from todays price in a the next quarter.
CBA Price at posting:
$69.87 Sentiment: None Disclosure: Not Held
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