Stock In Review - Commonwealth Bank - ASX: CBA

Commonwealth Bank (CBA) is the largest company listed on the Australian stock market (ASX 200) with a market cap just over AUD $123 Billion.

Being the largest company on the ASX it is a widely held stock among investors directly as shareholders and indirectly via managed funds and super funds both domestically and internationally.

Similar to Woolworths that was recently reviewed on this blog see: Has woolworths wow turned a corner?
CBA had experienced strong and consistent share price gains over a number of decades and has been a very popular stock for that very reason.

Below you can see that CBA has joined a great run from the $5.80 a share range back in 1992 to the more recent highs achieved in March 2015 of just over $96 a share.

CBA's stellar share price performance over 23 years.

More recently CBA has been struggling to reach new highs in its share price. Since touching the $96 level last year the stock has been in a downtrend and bouncing off the $70 a share range to form a strong support level.

Below on the weekly chart you can see the level marked with a black line labelled - $70 strong support level, has so far not been breached, as CBA is currently trading just under the $72 a share level today.

If CBA was to break the $70 support level the next support area would be around the $64 a share range shown below with the black line labelled - $64 next level of support.

Zooming in on the stock you can clearly see since October last year that CBA has been bouncing off the $70 a share level a number of times and is close to approaching the $70 level for the 4th time in 12 months.

CBA just recently reported its earnings last month and based on the market's response sending the share price from around $78 a share when they announced their profit result to just under the $72 a share today the market believes the profit results were underwhelming for the largest bank and company in Australia.

Disclaimer: This post was for educational purposes only and all the information contained within this post is not to be considered as advice or a recommendation of any kind. If you require advice or assistance please seek a licensed professional who can provide those services.