Shares of CBA have traded back over $75.00 in early trade on the back of solid gains in the US banking sector on Wall Street.
However, we see this as a brief corrective move within the broader 8% decline over the last month.
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A report from Credit Suisse this morning suggests that the CBA could face a $200 million increase in its annual operating costs over the next two years because of legal fees and related costs to defend the AUSTRAC money laundering accusations.
Our ALGO engine triggered a sell signal in CBA on July 4th at $84.00. We see solid technical resistance in the $75.60 area and more range extension to the $70.00 handle over the medium term.
Commonwealth Bank
