CBA update

With CBA going ex-dividend, the question is where will the price fall of the last few days stabilise? The most likely target zone seems to be $51.60 (50% retracement of the move from the Nov 29 low) to $52.67 (50% retracement of the move from the Jan 6 low). This zone coincides with the wave 4 of the lesser degree which measures the move from the Jan low - a common support for the wave 4 of the next higher degree. Presently, there is really no reason to doubt that the price will not get back to at least the highs of around $55.80 in the short term, particularly given that the weekly chart is bullish and the general market is strong and rising as evidenced by the XAO Indicator http://asxindicator.blogspot.com/. A decline below $51.30 would change the shorter term picture, although the longer term targets would remain unchanged - for the time being.

Click on chart to enlarge