CBA had a nice bounce after going ex-dividend last week. For chartists, this sets up the $79.40 area as an obvious support level.
The $79.40 area now has the following things going for it as a potential support zone:
- The old high from November last year which now serves as support
- A trend line dating back to May 2012 AND
- The 38.2% Fibonacci retracement of the last major rally that began in February 2014.
A break below this support could bring the 50% retracement level around $78.00 into play. The 200 day moving average is currently at $78.20 adding to the possible significance of that level
CBA chart support - Weekly