Wednesday, 6 May 2015

$ANZ $CBA $NAB $WBC monthly charts - Aussie banks turn lower, 3 of 4 show bearish wedges from 2009 low

The ASX 200 has been sold off heavily over the past week. Let's have a look at monthly charts for the big four banks, which make up a large part of the index weighting and have lead the decline.

Three of the big four formed bearish wedges from the 2009 low, possibly complete now, which indicate that we should expect a move back to those 2009 lows. Long term readers will know that I expect the ASX 200 to move below the 2009 low in the next couple of years. Let's see.

I will start with CBA, which I posted on in February, when the water cooler talk was all about whether or not the share price would reach $100. Back then I wrote "CBA is testing dual trend channel resistance. Would be a perfect place for it to make a big top, either immediately or after a brief earnings inspired throw-over."  ..... well, yes.