There’s plenty of trader interest in CBA’s chart at the moment. Recent nudges below trend channel support combined with a failure to rally back to the resistance line have created an impression of fatigue. Not only that, all this up and down on the spot action formed into the classic chart head and shoulder pattern.
It seems an act of bravery to suggest that Aussie dividend hunters might be missing in action, even temporarily. But they weren’t out in force yesterday. In another sign of weakness, CBA shares gapped below the neck line of the head and shoulder. For chartists this creates a negative bias for a while. At this stage it CBA shares would need to move back above the $82.68 high to dispel that bias