Shares of CBA have opened over 2% higher to reach $70.35 in early trade.
Before the open, CBA announced that the bank had settled on the alleged money laundering charges for $700 million.
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This amount is not quite twice the $375 million amount the bank earmarked for the potential penalty, but well below some of the early estimates which were over the $1 billion mark.
And while settling these allegations is a positive result for CBA, we still believe the share price has more downside risk than upside potential.
Our ALGO engine triggered a sell signal for CBA at $80.32 in November last year. We see the next significant support level near $68.50.
CBA
