Commonwealth Bank of Australia (ASX:CBA) HEFFX Highlights

Commonwealth Bank of Australia (ASX:CBA) HEFFX Highlights

Commonwealth Bank of Australia (ASX:CBA) HEFFX Highlights

  • Last AGM season, the Commonwealth Bank was one of a record number of companies to receive a ‘first strike’ against its remuneration report.
  • What annoyed shareholders was a proposal to move towards ‘soft’ unquantifiable targets for huge bonuses for chief executive Ian Narev.
  • Since that meeting last November, CBA has become embroiled in the money laundering scandal which has cost Mr Narev his job.
  • It has prompted University of Sydney’s Kym Sheehan to urge CBA shareholders to deliver a ‘second strike’ when they meet again this November.

Commonwealth Bank of Australia is a provider of financial services, including retail, business and institutional banking, funds management, superannuation, life insurance, general insurance, broking services and finance company activities. The Company’s segments include Retail Banking Services, which provides home loan, consumer finance and retail deposit products; Business and Private Banking, which provides banking services to relationship managed business and agribusiness customers; Institutional Banking and Markets, which services its corporate, institutional and government clients; Wealth Management segment, which includes global asset management, platform administration, and life and general insurance businesses; New Zealand, which includes the banking, funds management and insurance businesses operating in New Zealand; Bankwest, which offers a range of deposit products, and IFS and Other Divisions, which includes the Asian retail and business banking operations.

Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

The projected upper bound is: 78.53.

The projected lower bound is: 73.77.

The projected closing price is: 76.15.

CWLTH BANK FPO closed up 0.980 at 76.300. Volume was 25% below average (neutral) and Bollinger Bands were 50% narrower than normal.

Open High Low Close Volume___
76.080 76.300 75.760 76.300 2,659,635

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

Moving Averages: 10-period 50-period 200-period
Close: 75.46 77.58 81.82
Volatility: 18 19 19
Volume: 2,924,729 3,666,478 3,189,255

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.

Summary

CWLTH BANK FPO is currently 6.7% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 11 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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 54.8536. This is not an overbought or oversold reading. The last signal was a buy 4 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 51.05. 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 19 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 44. This is not a topping or bottoming area. The last signal was a buy 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 18 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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