“The share prices of the Big 4 banks have been under pressure since the RBA raised interest rates earlier this month,” Michael said.

“In early June, CBA shares were only a few dollars away from their all-time highs.

“However, a weaker housing market and the higher probability of a recession meant that higher share prices were always going to be an impossible task.

“The CBA chart is interesting because there had been some very obvious support back near $92.50 (see the blue line on the chart).

“This is because on 3 occasions we saw it rally strongly off those levels.

“However, during the most recent sell-off, CBA broke this support level.

“Over the past week, we have also seen CBA try to rally back near that old support line, only for the selling to kick in again (circled on chart).

“This is a negative sign.

“This means that the selling pressure isn’t over yet for CBA and it is likely to see the share price continue to slide.

“For patient investors, we don’t need to rush into buying CBA just yet as there is a great chance we can pick up the shares at cheaper levels,” Michael said.

Commonwealth Bank of Australia (CBA)

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.