Stock: Commonwealth Bank Of Australia (CBA ASX)
Taking a decade-long technical view of Australia’s largest listed company, the Commonwealth Bank of Australia (CBA), we can see the stock ran up to a pre-GFC (Global Financial Crisis) high around the $62.00 level. In the aftermath of the GFC, price bottomed out at a low of $23.90 in January 2009 forming key long-term support in the process. With the benefit of hindsight, we can now truly see this point in time to have been a real ‘blood in the streets’ type buying opportunity for anyone who had the capital and the gusto to buy the lows. A 6-year golden bull run followed which saw price quadruple from $23.90 to top out & test $96.20 in March 2015 forming key long-term resistance in the process. In the three years since the 2015 peak at $96.20, the sellers have claimed the bragging rights having crunched price back into the $70 region to be perched back above the key long-term support zone at $58.15 to $64.15.
What Does CBA Do?
The Commonwealth Bank of Australia (CBA) is the largest listed company on the ASX by market capitalisation. Its operations include the offering of a broad range of banking & financial products & services to retail, small business, corporate & institutional clients. These services are offered both over the counter (in branch) & remotely via its digital channels. The bank’s primary operations are centered around Australia, New Zealand & Asia with its reach extending further out to the U.K & USA.
To access a list of company announcements, financial summary & dividend history – Click Here.
The Baron’s Brief – Official Summary
As a trend following momentum trader, The Baron seldom tries to pick the bottom or catch the falling knife in stocks. An exception to this rule can be when we are dealing at the top end of the market with the behemoths, the heavyweight dividend payers like CBA. In the event that the share price weakness continues and a fall back into the key support zone at $58.15 to $64.15 occurs, it could be likely that the buy case (or proposition) for the big money, the institutional investors & super funds, becomes too compelling to ignore. The Baron will be on watch for a buy signal within the key support zone with the pre-GFC high around $62.00 providing a potential point where the big money could pounce.
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Disclaimer: The information contained in this article has been prepared solely for the entertainment & educational purposes of the reader and does NOT constitute financial or investment advice. Any examples presented in this article are for illustration purposes only. No person, persons or organisation are authorised or permitted by the authors to take any action on the reliance of this information without first consulting an authorised, accredited financial planner or advisor. The authors are entitled, at their sole discretion, to hold positions in the above-mentioned stock/s. The authors accept no responsibility for the accuracy, completeness or timeliness of the information contained in this article. Disclosure – No positions are currently held in CBA – ASX at the time of publishing this article (This is a disclosure and NOT A RECOMMENDATION).