StoSto

BNS 10% over 200D EMA, Time to take profits

Short
TSX:BNS   BANK OF NOVA SCOTIA
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3
As someone with BNS holdings I am going to be cutting back my position and taking profits. Why?

The main reason is illsutrated in the chart above, the stock has had a tremendous rally in recent months and is now trading at a 10% premium to its 200D EMA . Since 2013 there have been two other instances where BNS was trading 10% over the 200D EMA and over the following months the stock fell. I am very comfortable taking profits here and will.

Look for a retracement to the 200D EMA over the next couple months.