At the start of this year, most analysts were bearish on the big 4 banks. There were concerns that banks were too expensive, and that these stocks would struggle in an environment of depressed growth, high interest rates, and increased competition.
“Our analysis of the charts suggested that the banks would in fact trade higher, and we have shared these views before in this column,” Michael said.
“Now as we approach the end of the year and CBA is making new all-time highs, our charting analysis suggests that it might continue to push even higher again.
“Our most recent buy on CBA for our clients was at the end of September when it was trading near $135.
“The stock had fallen on a brief rotation out of banks and into resources but bouncing off a trend line indicated that the upside was not yet over the for the banks.
“After recently peaking near $160, the stock fell back initially but then traded sideways in a tightening range.
“It then broke out of this range two days ago.
“CBA is therefore likely to continue to trend higher from here and continue to make new highs,” Michael said.
Comm Bank Graph
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 regard to your circumstances.
