CBA – Reports 12 Aug

Commonwealth Bank of remains under Algo Engine sell conditions and we see resistance building near the $74 price level.

CBA reports FY20 earnings on 12 August, at which time the market will focus on CBA’s dividend and any capital management commentary. Consensus expectations are for earnings to be $7.8bn, (down 10% on 2019 numbers), and the 2H20 dividend to be cut by 50%.

We remain on the short side of the CBA trade.

Commonwealth Bank

We remain cautious on the banks and feel the trough in the share price may be two to three months out from now, at which point a good long-term buy opportunity will be in place.

Short term we continue to watch CBA track below the downsloping resistance.


Commonwealth Bank of Australia – unaudited cash profit fell 23% in the three months ended March 31 to $1.3 billion from $1.7 billion in the year-earlier.

CBA has provisioned $1.5 billion for COVID-19 provisions.

The below graph provides a picture of the trend that short-term traders may be interested in.