During a thin, pre-holiday trading session on Friday, all the major banking names bounced off their intra-day lows.
Into the close of ASX trade, our ALGO engine triggered a sell signal in MQG at $90.90.
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MQG peaked on May 8th at $96.30; the day before the government announced the banking levy. Subsequently, the shares dipped to $82.30 on September 8th.
With all the local banking names facing headwinds in core revenue growth going forward, we consider the rebound in MQG shares as corrective in nature.
As the chart below illustrates, a trade back to the June 20th high of $91.45 would signal a “double top” and likely be met with selling interest.
With internal momentum indicators showing an “overbought” condition, we see scope for MQG shares to retest the $83.00 level over the medium-term.
Macquarie Group
