Comm Bank's rearguard action
11.52 am CBA has major support at 70 bucks, stemming back about 4 years. I thought the stock looked like a potential short yesterday but didn't take it. It has been as low as 6963 but has fought back to be steady at 7009. Here's the weekly.
The ASX 200 index is 47 points lower despite decent leads but I'm not surprised as the instinct to correct the big April run and the perceived lack of value at the 6100-6150 highs is driving the market. The XJO is at 6037 and I would expect it to weaken further over the next week to around 5950 where support should kick in.
MIN looks likely to go below 1900 and PLS is down a couple of cents too but I have a couple of hedges which are going some way to balancing things out.
The small caps are mixed with the best performer being NEA which I bought yesterday at 94. I was looking at a Base type entry or you could call it a minor breakout. The more convincing breakout would be a breach of 100 which is the high of the first corrective bounce. I think it can get to new highs but whether it does it in this swing is a moot point. It seems to be petering out so I may not get the start of a surge as I was hoping. It opened strongly at 97 but has lost its way as the market fell.
4.39 pm The market recovered a little towards the close to finish at 6042, down 0.7%. MIN traded slightly below 1900 but closed at 1910. I was surprised and still think it might do some work below 1900. PLS faded and looks tenuous here and the shorts provided some cover. I added a couple of new shorts in CAR and MFG. The Carsales short is a Base type entry where I'm hoping a break of the early May low of 1417 would lead to a drive down. The weekly made a lower high though I don't expect it to go back the April 1320 lows.
The small caps are mixed with the best performer being NEA which I bought yesterday at 94. I was looking at a Base type entry or you could call it a minor breakout. The more convincing breakout would be a breach of 100 which is the high of the first corrective bounce. I think it can get to new highs but whether it does it in this swing is a moot point. It seems to be petering out so I may not get the start of a surge as I was hoping. It opened strongly at 97 but has lost its way as the market fell.
4.39 pm The market recovered a little towards the close to finish at 6042, down 0.7%. MIN traded slightly below 1900 but closed at 1910. I was surprised and still think it might do some work below 1900. PLS faded and looks tenuous here and the shorts provided some cover. I added a couple of new shorts in CAR and MFG. The Carsales short is a Base type entry where I'm hoping a break of the early May low of 1417 would lead to a drive down. The weekly made a lower high though I don't expect it to go back the April 1320 lows.
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