Alot of stocks with in the financial sector have broken higher in recent weeks. Nab ha remained in a trading range of $20.00 to $22.00 since the beginning of March.

A stock cannot stay in a trading range permanently. Usually the longer the stock stays in the trading range the stronger the breakout. NAB has not only been in consolidation but squeezing in tighter in the last few weeks. With all this pressure, the breakout is likely to be strong.

After buyers managed to break out of the 18 month down trend, a higher peak (bullish) was formed as NAB went into consolidation. The strong break out and consolidation pennant are a flag pattern that has a bullish projection target of $30.00, however there is a significant resistance line at $25.00.

Should NAB break up from the consolidation at conservative target of $25.00 could be reached.

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