Commonwealth Bank: Consolidation Before Upside

Technicals | Dec 19 2023

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

By Michael Gable 

It has been a remarkable few days on the market with the US Federal Reserve all but providing us with the interest rate pivot that can only be bullish for stocks. This paves the way for 2024 to be a much more fruitful year on the market. Stocks are breaking higher on good volumes and we expect swift recoveries from here. This is not too dissimilar to this time in 2018 where rate cuts in 2019 led to a nice rally in the market. The S&P/ASX 200 Index has already exceeded our first target, and after some cooling off in the short-term, it is likely to go on to retest 7600. Our call from several months ago that the Australian market could be trading above 8000 in 2024 is now not looking so far-fetched after all.

For today's report, we have a chart on Commonwealth Bank ((CBA)).

We wish you a Merry Christmas, and we look forward to helping you make money in 2024. If you have got this far with trading the market in 2023 without throwing in the towel, then half the battle has been won because 2024 is shaping up to be a very good year for those still around to take advantage of it. Our next report will be out on 2 January 2024.

Like the broader market, CBA has been trading sideways for two years and it is now hitting the upper end of the trading range. It is looking overbought in the short-term and is likely to consolidate sideways for a short period of time. However, the next big move is likely to be to the upside where a clear break above $110 should lead to a new uptrend.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

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

Disclaimer

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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CBA

For more info SHARE ANALYSIS: CBA - COMMONWEALTH BANK OF AUSTRALIA