CBA, like most of the banks has been in a long-term downtrend since 2015. However it is in medium term uptrend which has reasserted itself following the March Covid fall. Price is above an uptrend line and generally making higher troughs and peaks (the last trough was lower however). Price reversed off resistance at $74.37 to retest the rising uptrend line before rising back to the $74 resistance. Price broke above resistance to make a short term target of $85.90 The longer term outlook is unclear. The long term downtrend may continue and I would want to see price break the high at $91 to think new all-time highs could be possible. I see the CBA as a medium term trade - subject to concerns re the over-arching long-term downtrend.

CBA was recommended here as a potential short-term trade but as price seems to be reversing off the upper boundary of a price channel the opportunity for that short-term trade may have been and gone - although there always remains the probability it will achieve target (it's just less certain than it was previously).

CBA 27Nov20

Contact

Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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