Commonwealth Bank of Australia Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Commonwealth Bank of Australia stock price ended at $119.00 on Tuesday, after gaining 2.07%.
(Updated on May 07, 2024)
The Commonwealth Bank of Australia stock price gained 2.07% on the last trading day (Tuesday, 7th May 2024), rising from $116.59 to $119.00. It has now gained 4 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the stock fluctuated 1.81% from a day low at $116.89 to a day high of $119.00. The price has risen in 8 of the last 10 days and is up by 5.42% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 1 million more shares were traded than the day before. In total, 3 million shares were bought and sold for approximately $312.23 million.
The stockis at the upper part of a horizontal trend and normally this may pose a good selling opportunity but a break-up through the top trend line at $120.57 will give a strong buy signal and a trend shift could be expected. Given the current horizontal trend, you can expect Commonwealth Bank of Australia stock with a 90% probability to be traded between $110.37 and $119.22 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
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CBA.AX Signals & Forecast
Mostly positive signals in the chart today. The Commonwealth Bank of Australia stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at $115.45 and $116.18. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, April 19, 2024, and so far it has risen 6.38%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal. 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.
Golden Star 12 Months
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 $116.41 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $2.11 between high and low, or 1.81%. For the last week the stock has had daily average volatility of 1.19%.
Our recommended stop-loss: $113.80 (-4.37%) (This stock has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 11 days ago.)
Trading Expectations (CBA.AX) For The Upcoming Trading Day Of Wednesday 8th
For the upcoming trading day on Wednesday, 8th we expect Commonwealth Bank of Australia to open at $118.30, and during the day (based on 14 day Average True Range), to move between $117.35 and $120.65, which gives a possible trading interval of +/-$1.65 (+/-1.39%) 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 2.77% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $119.25 (0.21%) than the support at $116.41 (2.18%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Commonwealth Bank of Australia stock A Buy?
Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Commonwealth Bank of Australia stock to perform well in the short-term period.
Current score: 3.667 Buy Candidate Unchanged
Predicted Opening Price for Commonwealth Bank of Australia of Wednesday, May 8, 2024
| Fair opening price May 8, 2024 | Current price |
|---|---|
| $118.30 ( 0.591%) | $119.00 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for CBA.AX
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 120.41 | 1.18 % | |
| R2 | 119.60 | 0.505 % | ||
| R1 | 119.10 | 0.0863 % | ||
| Current price: | 119.00 | |||
| Support | S1 | 117.49 | -1.27 % | |
| S2 | 116.99 | -1.69 % | ||
| S3 | 116.19 | -2.36 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 121.45 | 2.06 % | |
| R2 | 120.34 | 1.13 % | ||
| R1 | 119.25 | 0.210 % | ||
| Current price | 119.00 | |||
| Support | S1 | 116.41 | -2.18% | |
| S2 | 116.28 | -2.29% | ||
| S3 | 115.54 | -2.91% |
CBA Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Feb 21, 2024 | Feb 21, 2024 | Mar 28, 2024 | $2.15 | 1.79% |
| 2 | Feb 22, 2023 | Feb 22, 2023 | Feb 22, 2023 | $2.10 | 2.12% |
| 3 | Aug 17, 2022 | Aug 17, 2022 | Aug 17, 2022 | $2.10 | 2.11% |
| 4 | Feb 16, 2022 | Feb 16, 2022 | Feb 16, 2022 | $1.75 | 1.78% |
| 5 | Aug 17, 2021 | Aug 17, 2021 | Aug 17, 2021 | $2.00 | 2.02% |
FAQ
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