CBA.AX closes above its opening price after recovering from early selling pressure
Commonwealth Bank (CBA.AX) Technical Analysis Report for May 17, 2018 | by Techniquant Editorial Team
CBA.AX ended Thursday at 71.16 gaining A$0.37 (0.52%). Today's closing price of 71.16 marks the highest close since May 9th. Trading up to A$0.30 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CBA.AX as at May 17, 2018):
Thursday's trading range was A$0.81 (1.14%), that's below last trading month's daily average range of A$1.06. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average.
Notwithstanding a weak opening Commonwealth Bank managed to close above the previous day's open and close, forming a bullish Engulfing Candle.
Breaking through the key resistance level at 70.80 today, it is now likely to act as support going forward. Prices are trading close to the key resistance level at 71.71.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 71.78 where further buy stops could get triggered.