MM has called CBA over $100 since I can remember but the picture is getting more bullish both technically and fundamentally almost by the day. In similar fashion to the ASX I’m confident CBA will again correct $5-7 in 2021 but this might not unfold until we’ve breached $110 – investors are already looking forward to another attractive fully franked dividend in August along with the strong potential of additional capital management which explains one of the reasons why pullbacks remain shallow, well supported and short-lived.
We recently trimmed our large positions in CBA & NAB back from 10% to 7% looking to buy a regional bank into weakness, we’re not panicking at this stage but the sector does definitely feel like it will go higher before considering another test of the downside. We may simply pay up for BOQ.
MM remains bullish CBA medium term
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