NAB is an interesting chart that currently looks stronger than perhaps its peers. Price has generally been in a long-term decline for several years but from its March 2020 low it has been consistently rising in what could be a price channel. Well, consistently until the recent correction when it fell to the lower boundary of the price channel I can see. Last week it bounced off that lower boundary reinforcing the probable existence of said channel. While not showing any buy signals it could be one for someone wanting to add a bank to their portfolio.

NAB 24Jun22

27 August 2021

NAB has recently risen to resistance at $28.00, fell back to $25.50 before retesting $28.00 with some daily volume. Should it break and close that level of resistance then a target of $30.50 would be suggested. 

The blue dashed descending line on the chart is a line of resistance that prices have not broken above (until now) for some 4 years.

The banks tend not to have large spikes in their price so don't expect to be buying sheep stations with any profits from a trade but a modest return of 10% could be on offer. For anyone looking to include some bank stocks in their portfolio, the NAB may respresent an opportunity at the moment.

Note, that price needs to break that resistance confidentally for thatsuggested target to be in play. In the past price has reversed strongly from the long term resistance when it has turned price - and even though price seems to have broken that line, there is always the chance it could now fall back. As they say - nothing in trading is guaranteed.

Bank stocks normally move in lockstep although the NAB's chart has the strongest pattern suggesting a move up.

NAB 27Aug21

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Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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