Can CBA Run Further?

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

By Nick Linton-Ffrost

Trading tactics

Look for a confirmed break above 77.00 or a higher low to form above 73.00 before opening longs.

Otherwise look for sell signals if Commonwealth Bank ((CBA)) sits around 73.00 for more than a few days.

Pre-empting the break is not recommended.

Rationale

CBA remains in a corrective structure which may be the base for another rally towards 81.00 or a five wave corrective dip to 69.00.

If trading from the long sides we suggest waiting for a higher low to form above the bottom of the pattern around 73.00 before opening longs or trading a confirmed break above 77.00.

If CBA pulls back and sits around 73.00 for a few days the odds turn in favour of a deeper corrective structure towards 65.00-69.00.

 

Another trading idea from

Fifth Wave | fwtc.com.au                                               

FW generates over 150 Trading Alerts on the ASX100 each year. We are a subscription service specialising in short term technical strategies based on 27years experience.

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