WBC Poised For Test Of All Time Highs

WBC has been the greatest beneficiary of the current rally, ahead of all the other major banks in terms of return over the past 12 months.

The wave of euphoria surrounding dividend stocks has seen WBC breakout through the resistance of 28.43, the mark achieved in April 2010 before the "Eurogeddon" woes came into the spotlight. The positive momentum on the XJO has carried its price to a 30-handle, with current price action suggesting a test of its all time highs of 31.31 made back in November 2007.

The hourly picture seems to also support this view, with a breakout of resistance from late January achieved earlier this week.

As far as Ichimoku Clouds and TD Indicators are concerned, there is nothing to suggest a trend breakdown at the moment, with the latest surge in WBC's price taking it away from the cloud as well as the KijunSen & TenkanSen lines. In our view, despite breakdown in the active TD Sell Setup today on number 5 - a minor hiccup but still one to watch - there is still seems to be both bullish momentum on the MACD and readings on the Ichimoku indicators to carry it towards the 31.31 mark.

If this rise eventuates, it may serve as further fuel for the current rally on the XJO to reach 5,177 - the mark which we discussed in our earlier post today.