Key Highlights

  • ANZ has developed a small inverse head and shoulders pattern following the significant correction triggered by a larger-scale head and shoulders formation earlier in 2026.
  • The stock has recovered strongly and is now approaching the neckline of the smaller bullish Reversal pattern.
  • ANZ closed at $38.01, gaining 1.33% in the latest session, bringing price close to the key neckline resistance around $38.89.
  • The long-term ascending Trendline continues to provide structural support and reinforces the broader recovery.
  • A decisive breakout above $38.89 would confirm the inverse head and shoulders pattern and strengthen the short-term bullish outlook.
  • The measured-move projection from the pattern points to an upside target near $45.49, while $40.95 represents an important intermediate resistance level.
  • Despite the improving technical structure, the larger-scale bearish reversal remains relevant until ANZ decisively breaks above the major resistance levels overhead.

ANZ Group Holdings Limited (ASX: ANZ) continues to show an improving technical structure after undergoing a sizeable correction during the first half of 2026. The stock has recovered from its recent lows and is now approaching the neckline of a smaller inverse head and shoulders pattern.

The latest advance has brought ANZ to $38.01, leaving the stock only moderately below the key neckline resistance around $38.89. A decisive breakout above this level would confirm the bullish reversal formation and potentially open the way toward the $45.49 measured-move target.

Strong Capital Position and Banking Sector Leadership

ANZ remains one of Australia's largest banking institutions, supported by a diversified Earnings base across retail, commercial, institutional and international banking operations. The bank continues to benefit from its strong market position, disciplined risk management framework and robust capital position, providing resilience throughout changing economic and interest-rate cycles.

The company also maintains an attractive Dividend profile and continues to focus on operational efficiency, digital transformation and balance-sheet strength. Combined with Australia's relatively resilient banking sector, these factors provide a supportive fundamental backdrop for ANZ's ongoing recovery. The fundamental backdrop remains consistent with the assessment in the reference article.

Associated Risks

Despite the improving technical outlook, ANZ remains exposed to risks associated with economic growth, Credit quality, interest-rate movements and regulatory changes. A deterioration in economic conditions could affect Loan growth and increase Impairment expenses across the banking sector.

The recent advance also remains close to major resistance. Failure to break above $38.89 could result in renewed selling pressure and a retest of lower support levels. A rejection at this level would leave the inverse head and shoulders pattern unconfirmed.

In addition, the broader bearish implications of the larger head and shoulders pattern remain relevant until ANZ can overcome the major resistance zone around $40.95.

Technical Analysis Outlook

ANZ's Daily Chart shows a strong recovery toward the neckline of a developing inverse head and shoulders pattern, with the latest 1.33% gain bringing the stock close to a key breakout level.

ANZ's Daily Price Chart (at the closing price of 03/09/2026). Powered by: tradingview.com.

  • Following the earlier large-scale head and shoulders pattern, ANZ developed a smaller inverse head and shoulders formation. The pattern's neckline is now positioned around $38.89, making this the most important near-term resistance level.
  • A decisive daily close above $38.89 would confirm the inverse head and shoulders breakout and signal that buyers have regained greater control of the short-term trend.
  • The pattern's measured-move projection indicates a potential upside target near $45.49. Before reaching this target, ANZ would encounter an important intermediate resistance level around $40.95. A sustained breakout above $40.95 would further strengthen the bullish technical structure and increase the probability of a move toward $45.49.
  • The long-term ascending trendline remains an important support reference. As long as the stock maintains this broader trend structure and successfully breaks through $38.89, the technical outlook continues to improve.

Bottom Line

ANZ Group Holdings Limited (ASX: ANZ) is showing a significant improvement in its short-term technical outlook after recovering from the correction triggered by the larger head and shoulders pattern earlier this year. The development of a smaller inverse head and shoulders formation suggests that selling pressure has eased and buyers are attempting to regain control.

The latest 1.33% advance to $38.01 has brought the stock close to the critical $38.89 neckline resistance. A decisive breakout above this level would confirm the bullish reversal pattern and potentially open the door to an initial move toward $40.95, followed by the measured upside target near $45.49.

However, the broader technical structure remains subject to confirmation. ANZ needs to overcome $38.89 and subsequently $40.95 to provide stronger evidence that the recovery has evolved into a broader bullish reversal. Until then, the current advance should be viewed as a strong recovery attempt within the larger corrective structure.