Rally Expected For NAB

This story features NATIONAL AUSTRALIA BANK LIMITED. For more info SHARE ANALYSIS: NAB

By Michael Gable 

Since this time last week the market has put on about 90 points and continues to look like it will edge higher towards 5800 over the next few weeks. We have an interest rate announcement today but futures markets are pricing in about 90 per cent chance of no change. Whether the next move is up or down and whether it happens this year or next is not an issue in our opinion. What matters is that for at least the next couple of years, they will be in stimulatory territory, and that is supportive of markets. As mentioned previously, the near term focus is now on specific companies and their upcoming financial results, so we should find the next few weeks particularly interesting.

Today we take a look at National Australia Bank ((NAB)).
 

NAB spent much of 2014 making a “flag formation”, as it corrected back against the longer-term uptrend (shown by the two blue lines). Like the other banks, it broke out earlier this year and staged a very impressive rally. After pulling back a few months ago, you will notice that it has come back to some uptrend support (indicated by the red line). Recent price action has seen it rally quite nicely, back above the flag. A crossing of the MACD is now very imminent (circled) which would also indicate a movement higher for NAB. We expect NAB to rally from here until it hits resistance between $36.50 – $37.00.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.

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