Technicals | Aug 03 2021
This story features COMMONWEALTH BANK OF AUSTRALIA. For more info SHARE ANALYSIS: CBA
By Michael Gable
The Aussie market has pushed past that key 7400 level and clearly remains in an uptrend for now. Today's research has identified a buying opportunity with a chart on Commonwealth Bank ((CBA)).
Our prior CBA comment was on 13 April when it was trading near $87. We noted the formation of the ascending triangle and commented that "as soon as we get a break above the horizontal line (if we get a break), CBA shares would then likely make a run higher and attempt to test the $100 level." After making that run to over $105, CBA suffered a couple of large days down on high volume. This put an end to the uptrend momentarily.
However, instead of taking the higher probability route by falling away to lower levels, it managed to spend the last several weeks trading sideways in a narrow range instead. A couple of weeks ago it broke support (circled). However, within a couple of days it was back in the range and it is now pushing to the upside of the range. This break of support a couple of weeks ago is therefore a "false break", and that is a powerful sign that strong buying support exists for CBA.
With the shares now pushing to the upside, this is therefore another buying opportunity and CBA is likely to continue trending higher from here and should be making new highs shortly.
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
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For more info SHARE ANALYSIS: CBA - COMMONWEALTH BANK OF AUSTRALIA