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


Robert Norman

Phone: 0428 346 951

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