CBA.AX drops to lowest close since February 20th

Commonwealth Bank (CBA.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team


CBA.AX breaks below 50-day moving average for the first time since February 18th
CBA.AX falls to lowest close since February 20th
CBA.AX dominated by bears dragging the market lower throughout the day
CBA.AX closes lower for the 7th day in a row
CBA.AX runs into sellers again around 73.34


Moving lower for the 7th day in a row, CBA.AX finished the week -1.19% lower at 72.31 after losing $0.62 (-0.85%) today, underperforming the ASX 50 (-0.09%). Today's close at 72.31 marks the lowest recorded closing price since February 20th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 72.51, the share confirmed its breakout through the prior session low after trading up to $0.48 below it intraday.

Daily Candlestick Chart (CBA.AX as at Mar 15, 2019):

Daily technical analysis candlestick chart for Commonwealth Bank (CBA.AX) as at Mar 15, 2019

Friday's trading range has been $1.31 (1.79%), that's far above the last trading month's daily average range of $0.88. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CBA.AX.

One bearish candlestick pattern matches today's price action, the Black Candle.

The stock closed below the 50-day moving average at 72.63 for the first time since February 18th. When this moving average was crossed below the last time on February 13th, CBA.AX lost -0.87% on the following trading day. After having been unable to move above 73.39 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 73.34.

While Commonwealth Bank is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "7 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Commonwealth Bank. Out of 7 times, CBA.AX closed higher 85.71% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 100.00% with an average market move of 4.89%.

We are currently reviewing the data for CBA.AX

We expect this issue to be resolved within 24 hours.

Trending Assets

Upgrade your trading!

Get the stats behind the charts

Find out what happened when Commonwealth Bank traded like this in the past. See the odds for each technical pattern with expected gain and loss.

Find out more
Top Movers
You have free reports remaining. Subscribe for unlimited access...SUBSCRIBELOGINGO!