Commonwealth Bank of Australia Stock Forecast

Commonwealth Bank of Australia stock downgraded to Buy Candidate
(Updated on Jun 20, 2024)

CMWAY Signals & Forecast

The Commonwealth Bank of Australia stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $83.61 and $80.42. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 18.90%. 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). Some negative signals were issued as well, and these may have some influence on the near short-term development. Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may also not.

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

Commonwealth Bank of Australia finds support from accumulated volume at $81.55 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 controlled movements and therefore the general risk is considered low. However, be aware of low or falling volume and make sure to keep an eye on the stock. During the last day, the stock moved $0.200 between high and low, or 0.235%. For the last week the stock has had daily average volatility of 0.83%.

The Commonwealth Bank of Australia stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Our recommended stop-loss: $82.91 (-2.88%) (This stock has low daily movements and this gives low risk. The RSI14 is 81 and this increases the risk substantially. There is a buy signal from a pivot bottom found 71 days ago.)

Trading Expectations (CMWAY) For The Upcoming Trading Day Of Friday 21st

For the upcoming trading day on Friday, 21st we expect Commonwealth Bank of Australia to open at $85.36, and during the day (based on 14 day Average True Range), to move between $84.26 and $86.48, which gives a possible trading interval of +/-$1.11 (+/-1.30%) 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 2.61% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $81.55, some $3.82 (4.47%) from the current price of $85.37, our system finds the risk reward attractive.

Is Commonwealth Bank of Australia stock A Buy?

Several short-term signals, along with a general good trend, 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. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Strong Buy to a Buy candidate.

Current score: 4.322 Buy Candidate Downgraded

Predicted Opening Price for Commonwealth Bank of Australia of Friday, June 21, 2024

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