Upside Pending For CBA

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

By Michael Gable 

Last week, we mentioned the resilience of the market and the likelihood of buying coming back in. We noted that an eventual move above 5100 would indicate a buying opportunity, with a target of around 5450 for the S&P/ASX 200 Index. Before we know it the market, is already getting close to 5300 again. Today we update charting levels for Commonwealth Bank ((CBA)).
 

Five weeks ago, as CBA was trading at $76.43, we noted a few bullish signals. There was the pullback to the long-term uptrend line, the almost perfect 3-wave decline from the high, and the buy signal on the MACD. We anticipated CBA to go up and hit resistance at just over $80. It is at that level now and given the strength of last week's move, we expect it to push through that. For the next few days however, expect some softness in the share price in the order of about a dollar or two. From that level, CBA is then likely to push higher again. We have further resistance near $83 and then $86.

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Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.

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

Disclaimer

Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). 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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