Commonwealth Bank of Australia (ASX:CBA) Trading Outlook

Commonwealth Bank of Australia (ASX:CBA) Trading Outlook

Commonwealth Bank of Australia (ASX:CBA) Trading Outlook

HEFFX are not buyers here our CBA Target is $70

Overall, the bias in prices is: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

By the way, prices are vulnerable to a correction towards 76.25.

The projected upper bound is: 78.57.

The projected lower bound is: 73.63.

The projected closing price is: 76.10.

HEFFX Candlesticks Suggest a Correction to the Downside

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 20 white candles and 29 black candles for a net of 9 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum is Mixed

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 8.3438. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 5 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.33. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 35 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -90. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.

CWLTH BANK FPO closed up 0.490 at 76.150. Volume was 35% below average (neutral) and Bollinger Bands were 29% narrower than normal.

Open High Low Close Volume___
76.250 76.510 75.840 76.150 1,922,629

Technical Outlook
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 77.21 75.34 76.47
Volatility: 15 21 26
Volume: 2,976,493 2,897,942 3,060,474

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


CWLTH BANK FPO is currently 0.4% below its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect volume flowing into and out of CBA.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on CBA.AX and have had this outlook for the last 15 periods.

Commonwealth Bank of Australia is an Australia-based financial services company. The Company is engaged in the provision of integrated financial services, including retail, funds management, superannuation, business and institutional banking, insurance, investment and share-broking products and services. The Company operates through seven segments: Retail Banking Services, which provides home loan, consumer finance, and retail deposit products and servicing; Business and Private Banking, which provides specialized banking services to relationship managed business and agribusiness customers, private banking to high net worth individuals, and margin lending and trading through Commonwealth Securities (CommSec); Institutional Banking and Markets, which offers debt and equity capital raising, financial and commodities price risk management, and transactional banking; Wealth Management; New Zealand; Bankwest, and International Financial Services (IFS) and Other Divisions.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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