National Bank: Beware The Downside

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

By Michael Gable 

In the last week, we have seen the Australian miners take a breather and banks find a bit of support. This has caused the market to continue its sideways motion with neither sector managing to head in the same direction at the same time. We continue to see movement beneath the blue chips with breakouts in stocks like Eclipx Group (ECX). Gold stocks have also taken a breather in the last week but the gold chart still looks good in the longer term. It is therefore a good time for investors to keep some sort of gold exposure while looking for a chance to add to those positions in the next few weeks.

Today we look at National Bank ((NAB)).
 

The banks have had a good few days but it is worth coming back and looking at the broader picture on weekly chart. As we have warned before, looking at NAB here, price action resembles that of a flag. Volume has also been decreasing over the last 4 months, as the price has been edging higher (indicated with the diagonal line on the volume chart). All of this graphically shows the weakness that is still inherent in NAB and the banks and we are still wary that at some point they will break down from this flag and drop to a new low for the year. For NAB we are still aiming for $28 as the next possible chance to buy the shares.

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)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

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

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). 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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