CBA Remains Range-Bound, Reports Wizard

This story features COMMONWEALTH BANK OF AUSTRALIA. For more info SHARE ANALYSIS: CBA

The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

By Rudi Filapek-Vandyck

For those with a negative view, it would seem CommBank ((CBA)) shares have carved out a triple top on price charts, each time having failed to crack tough technical resistance at $54.

The TechWizard, however, doesn't seem to be of an equally negative mindset. In his opinion, CBA shares are simply advancing through a trading range that has been in place since June. This range has kept the shares in between $47 and $54 since.

Trading ranges don't last forever, reports the Wizard, but at this point it remains anyone's guess to what direction CBA shares will break out. Hence his message: trade the range, until it is broken.

It goes without saying that a break-out above $54 would be very bullish and, alternatively, a break below $47 would be a clear negative signal.

The Wizard reports he at present does not own any shares in the company.

The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au All views expressed are his, not FNArena's (also see our disclaimer).

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