Australian Investment Blog

Today's report is relatively short BUT we believe will generate significant thoughts within most Australian investor. Commonwealth Bank (CBA) has become the largest company on the ASX200 with a market cap. of over $120B. As the largest stock in the ASX200, in the most dominant sector, what happens to CBA has a significant influence on the direction of the overall index? CBA has corrected 26.5% from its dizzy heights of March 2015, the question we ask ourselves is at what level should we now become aggressive buyers of this quality bank? Technical analysis simply exists as markets repeat and this is why at Market Matters we believe it has an important role to play in our investing decisions. When we look at the long term chart on CBA above an extremely clear pattern has emerged that should not be ignored until it stops repeating. Clearly CBA likes to correct in classic "abc" style pullbacks: 1. In 2008-9 CBA fell $25.08 from $61.90 to $36.
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