After reporting a stellar result last week, and gapping up, gapped down on Monday leaving an "island reversal". It's now consolidated this week at this lower level well under the island reversal.Thursday saw a downgrade of the four big banks by ratings agency Moody's. After reading that news I thought the Ozzie banks would fall heavily. CBA was flat yesterday. (So much for what I think.)
CBA is now at a critical support level (horizontal and oblique).
On Tuesday CBA fell below horizontal support and recovered on Wednesday - and would have shaken out a lot of shorts.
Friday's action will be interesting. A big day up and the stock could be looking at testing the recent high and negating the island reversal. A big day down - and I think CBA could be looking at a lot lower.
Given the overnight action in America on Thursday night - CBA will probably be flat - and keep us in suspenders for a while longer. :)
Good luck
Red
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