Bank sector technical outlook - reasons for caution. Late last week, WBC, ANZ and BOQ reached technical buy signal target levels. This has resulted in no bank stocks now being rated as technical buys, given the gains that have recently occurred causing technical targets to be reached. The four major banks are overbought on a momentum basis which is reason for caution relating to the sustainability of the current rally. However, technical top formations will need to be generated to activate outright sell signals.