May 27, 2009
NAB in Consolidation Pattern
By Planet Wealth
March and early April saw all the banks rally hard with the rest of the market. After this rally there are signs of weakening in many. NAB is one of those stocks.
Nab found resistance at $23.50 after the rally. This resistance level has been valid as far back as 1999 and is also the intersection of well respected Moving Average (MAV). From there the stock consolidated between $23.50 and $21.00. $21.00 has been a strong support made by a weekly support line, a 6 month up trend line and the 38% Fibonacci retracement level. The consolidation is showing signs of failing with a Lower Peak (LP) being formed.
The Support and resistance that has been keeping NAB in consolidation, are strong a there is multiple resistance and support lines at each level. Probabilities suggested a pull back is more likely. If this is to happen the next support is $19.00 and also the 62% Fibonacci retracement. Should NAB break up$26.00 is the next major resistance level.
Join our live trading room to improve your trading results: Click Here
Rent shares from the US market please visit our rent shares page.
Topics: candlesticks, Stock Charts, stock market, Technical Analysis | No Comments »
Comments
« ASX heading Downwards? | Home | QBE Still Bearish… But for How Long? »
