Strategic trade
Trade view / 24 July 2015 at 5:58 GMT

CBA breaks support, set to slide further

Trading Desk / Saxo Capital Markets
Instrument: CBA:xasx
Price target:
Market price:

From a review of Commonwealth Bank of Australia today, it is clearly visible that CBA has not only broken to the downside after being caught in a rising wedge, but the previous support level (blue line) has now become the resistance level, as the stock made an attempt to rise today but failed exactly on this line.

Since then, CBA has started to show further weakness by continuing to make intraday lows as we head into the weekend. Provided the stock closes near the low, this is a market on close sell order.

Management and risk description

Avoiding sell if closing well off its lows. Both stop loss and profit targets set in place.


Entry: Market on close

Stop: $90.57

Target 1: $80.00

Target 2: $73.17 

Time horizon: Until stop loss or profit targets are reached

Rising wedge

Chart: Saxo Bank

Five year CBA chart

Chart: Saxo Bank. Create your own charts with SaxoTrader; click here to learn more.

– Edited by Robert Ryan

Non-independent investment research disclaimer applies. Read more
Cassy Cassy
This comment has been redacted


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