Aussie Banks: technical clues to watch out for.

July 21, 2016

The recent bullish breakout on the Aussie XJO index has many traders looking at the Aussie Banks and wondering if they are going to recover recent losses and join in on this bullish XJO momentum. The five banks discussed in this post actually make up 26% of the XJO index. In this post I show their charts and point out some technical clues to watch for so as to assess their progress.

XJO weekly: S&P/ASX-200: there has been a bullish Flag-style breakout but note the lack of supporting ADX momentum just now. However, the +DMI is trending higher and is above the 20 threshold.

XJOweekly

ANZ Bank weekly: Australia New Zealand Bank: This looks to be a classic technical pullback with a move down to test the 61.8% fib of the 2009-2015 swing high move. There also looks to be a bullish channel breakout underway BUT note the following:

  • lack of supporting ADX and +DMI momentum.
  • trading below the weekly Cloud.
  • decrease in trading volume.

I would want to see these features reverse before being confident of any bullish continuation.

ANZweekly ANZweeklyCloud

CBA weekly: Commonwealth Bank of Australia:  This looks to be building up in a Bull Flag pattern BUT note the following:

  • lack of supporting ADX and +DMI momentum.
  • trading below the weekly Cloud.
  • decrease in trading volume.

I would want to see these features reverse before being confident of any bullish continuation.

CBAweekly CBAweeklyCloud

MQG weekly: Macquarie Group: This looks to be building up in a bit of a Bull Flag pattern BUT note the following:

  • lack of supporting ADX momentum HOWEVER the +DMI is above 20.
  • trading below the weekly Cloud BUT only just!
  • decrease in trading volume.

I would want to see these features reverse before being confident of any bullish continuation.

MQGweekly MQGweeklyCloud

NAB weekly: National Australia Bank: This is trading within a descending channel for now BUT note the following:

  • lack of supporting ADX and +DMI momentum.
  • trading below the weekly Cloud.
  • decrease in trading volume.

I would want to see these features reverse before being confident of any bullish continuation.

nabweekly NABweeklyCloud

WBC weekly: Westpac Banking Corporation: This is trading within a bulish descending wedge for now BUT note the following:

  • lack of supporting ADX momentum ALTHOUGH the +DMI is trending higher.
  • trading below the weekly Cloud but only just.
  • decrease in trading volume.

I would want to see these features reverse before being confident of any bullish continuation.

WBCweekly WBCweeklyCloud