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Commonwealth Bank (CBA) $108.17

MM has discussed the picture for CBA a number of times through 2021, we have been bullish Australia’s leading bank since the Royal Commission but I’m becoming wary of how many bullish reports have been in the papers over the last 48-hours. CBA has experienced 3 reasonable corrections during its march higher since the pandemic broke out, we believe another may be looming on the horizon. The stocks clearly bullish but at this stage we see 2 likely swings over the coming months:

  • Firstly MM is bullish looking for fresh highs above $110 but this is no longer a big call, it might be there this morning!
  • Secondly, we can see this move failing short-term leading to another pullback back towards $100.

Hence we are considering fading the current “pop” to the $110 area and reducing our position and migrating some funds to a stock that offers more upside – but we are keen accumulators below $100 – the question we ask ourselves is this all too short term?

NB The clarity of this picture is not perfect due to the $2 fully franked dividend being paid in 5-days’ time, it’s tempting to wait for it!

MM is bullish CBA medium term
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Commonwealth Bank (CBA)
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