CBA Daily Chart Analysis 14/03/2016

A short term chart with a short term outlook on CBA as @ the close on 11/03/2016. There are short term bullish developments with CBA which I will look at.

As mentioned previously, there is a potential H&S TOP in the making with CBA which is yet to be completed in the MONTHLY TF. Completion of that may never come. Even if it did, it doesn’t mean that it will succeed. But I am mindful of it and monitoring it.

Now to the DAILY TF to what matters in the short term.

The RIGHT SHOULDER of the larger potential H&S TOP of the MONTHLY did form as a H&S TOP of the DAILY. That ( Daily TF  H&S TOP) was completed and the tentative bearish price objective from it was suggesting a successful completion of the potential larger H&S TOP of the Monthly. The completed DAILY TF H&S TOP, after the events in the last trading week, is now negated/cancelled.Price action turning back into the completed pattern and closing above the violated neckline  cancelled the  completed H&S TOP of the DAILY TF. A bullish development which must be observed. In the cases such, when a completed pattern fails, an above average move in the  opposite direction (counter trend) is very likely. That is already showing itself with the largest rally on hand since the December 2015 PEAK. This is the rally that has happened since the beginning of March to date.

Next short term bullish development is the completion of a DOUBLE BOTTOM and its subsequent up move. We are now in a MINI TRADING RANGE on this daily TF requiring further short term analysis.Boundaries of that  TR is marked with dashed horizontal support and resistance lines.

You may skip next part if not familiar with short term OHLC reversal signals.

A  BULLISH KEY REVERSAL ( short term reversal) in the 2nd TF ( Intermediate/medium terms) of this DAILY Chart is also on hand. Easiest way to explain this for those of us who are not familiar with  KEY REVERSALS is to compare the last two rallies where the moves were terminated ( 1st @ the point marked as LP) ,or potentially terminated on the last move ( Last move is still in effect but a HP is confirmed). I have marked those two levels with LP and HP. This price action behaviour is  like an OUTSIDE BAR in the 1st TF where a price action opens below the lowest low of the prior low marked as LT and closes above the highest high marked as LP.

In terms of WYCKOFF METHOD, I am also marking the LT2 as a SELLING CLIMAX for now.

Daily CBA Chart as at the close on 11/03/2016.



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