The big question is, for how much longer? We currently see
no reason to step in front of a speeding freight train, until at least CBA’s technicals
tell us otherwise.
On the daily chart (which is very similar to the weekly
chart), CBA is encountering a rising wedge, suggesting that perhaps a reversal may emerge soon to give bears a shorting
opportunity. However, we recommend to proceed with caution as the momentum clearly lies
with the bulls from the MACD signals being shown, as a bullish cross begins to initialise.
The first number obvious number to watch is 63.70 – a failure to make new all-time highs
will give life to doubters. Support may be seen back at around 62.16 and its
20DMA.
If 63.70 is cleared, do not be surprised if CBA continues to
test its resistance trending from September 2011 lows at around 64.50.
Gathering momentum on the MACD could end up propelling CBA even higher from
here and crushing the doubters further.
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