Divergence has appeared on the short term and long term Stochastics. It warns of a possible correction.
Supporting this possibility is the large step up in volume at $99 without a corresponding increase in price. So we know some distribution is occurring but where is support? There's no supporting volume until the $83 to$81 mark, so this may be the short term target if prices were to breakdown.
Divergence can fail. A weekly close under $96 would give further weight that a correction is under way.
All of CBA's price action since the beginning of 2019 puts the control price at $81.93 (on weekly chart). This is currently marked at $80.26 on the chart idea above
Supporting this possibility is the large step up in volume at $99 without a corresponding increase in price. So we know some distribution is occurring but where is support? There's no supporting volume until the $83 to$81 mark, so this may be the short term target if prices were to breakdown.
Divergence can fail. A weekly close under $96 would give further weight that a correction is under way.
All of CBA's price action since the beginning of 2019 puts the control price at $81.93 (on weekly chart). This is currently marked at $80.26 on the chart idea above
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.