The banks have been sold down heavily recently as the drop in the Australian dollar has seen foreign money flow out. However, interest rates are still not going up soon and the yield is still viewed attractively by domestic investors. Now yielding about 5.5% plus franking, we should see support re-enter. ANZ also goes ex dividend in 2 months time so we also need to bear that in mind.
The chart shows that it has fallen to the 61.8% retracement of the Feb-Apr rally. It has also moved into oversold on the RSI (circled). It is yet to move above the 30 line to confirm a buy signal, but investors can do well in keeping a close eye here on what ANZ does next. There may be a buying opportunity around the corner.
