NAB A Buying Opportunity

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

By Michael Gable 

We mentioned last week that one of the outcomes for the US markets in the short term was to see it quickly sell-off to the long-term uptrend line and so far, they seem to be finding support here. Another 10% fall in US markets is unlikely in the short term, in our opinion, and they should head higher from here. However, we just need to keep an eye on how it gets on during the next few weeks. Any choppy tug of war price action that fails to take it higher would be a danger sign and leave it vulnerable to a final washout. In the meantime, we have seen some stocks come back to attractive levels. We covered the Big 4 banks a few weeks ago and whilst ANZ and Westpac haven't hit our downside targets yet, National Bank ((NAB)) has hit it almost perfectly, so we have a chart of NAB in today's report.

Our comment three weeks ago for NAB indicated that the stock should fall towards support at $28 before bouncing again. This was due to a number of factors, such as the stock looking weak at the time, along with $28 representing a neat "abc" decline from the 2017 peak and being a 61.8% retracement of the 2016 – 2017 rally. For the moment, NAB seems to be reading from our script, having fallen to $28.01 before bouncing. NAB now looks like a buying opportunity at these levels at we are confident of it trading higher. First line of resistance is between $30 – $31.

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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