Commonwealth Bank of Australia Stock Forecast

Commonwealth Bank of Australia stock downgraded from Hold/Accumulate to Sell Candidate after Friday trading session.
(Updated on Apr 26, 2024)

CBA.AX Signals & Forecast

A buy signal was issued from a pivot bottom point on Friday, April 19, 2024, and so far it has risen 1.01%. Further rise is indicated until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Commonwealth Bank of Australia stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $113.14 and $116.77. A break-up above any of these levels will issue buy signals. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely. The stock had a Golden Star Signal on Wednesday, October 11, 2023 in the long-term chart.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.

Support, Risk & Stop-loss for Commonwealth Bank of Australia stock

Commonwealth Bank of Australia finds support from accumulated volume at $112.73 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved $1.79 (1.59%) between high and low. For the last week, the stock has had daily average volatility of 1.32%.

Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.

Trading Expectations (CBA.AX) For The Upcoming Trading Day Of Monday 29th

For the upcoming trading day on Monday, 29th we expect Commonwealth Bank of Australia to open at $113.44, and during the day (based on 14 day Average True Range), to move between $111.27 and $114.71, which gives a possible trading interval of +/-$1.72 (+/-1.52%) up or down from last closing price. If Commonwealth Bank of Australia takes out the full calculated possible swing range there will be an estimated 3.05% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at $112.73 (0.23%) than the resistance at $115.54 (2.26%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is Commonwealth Bank of Australia stock A Buy?

Commonwealth Bank of Australia holds several negative signals and is within a falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Sell candidate.

Current score: -2.190 Sell Candidate Downgraded

Predicted Opening Price for Commonwealth Bank of Australia of Monday, April 29, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.