Nedbank has been in an upward slanting re-accumulation range over the festive season. With some volume returning we see a continuation of the move to the top of the channel. There is some negative divergence in the Volume RSI and a good momentum bar on Friday.
JSE:NED is showing signs of a possible reversal.
A few days ago a bearish harami formed at a very strong resistance level which at the same time formed a double top.
Planning on entering a short position if it trades a bit lower.
Nedbank Group is one of SA’s four largest banking groups by assets and deposits, with Nedbank Ltd. being its principal banking subsidiary. Nedbank Group is a JSE Top 40 company with its ordinary shares listed on the JSE since 1969 and on the Namibian Stock Exchange since 2007. The group's market capitalisation was R128 billion at 31 December 2017. Old Mutual plc...
Nedbank daily chart showing price attempting to break to the upside of an ascending triangle pattern that has formed.
Resistance is at R275. During the past week we have been seeing intra-day highs above this area, but still managing to close below it.
JSE:NED looking good for a long position as it has broken through the resistance of the ascending triangle pattern that it has been following.
It came back down and tested the support, and if it continues up, it should be a good long position.
Nedbank has spent most of this year in a bearish downtrend trend. After creating a high of R316.50, Nedbank fell as far as R223.58. It has rebounded off the low, but the stock is finding itself at a key resistance level once again.
The devil, however, is in the detail so let us analyse the chart.
The first thing to note is the declining trendline. Nedbank ...
Nedbank is testing the oversold trend of the upward stride which is just below the Yearly Pivot Point and at the 200 Week SMA. High volume has been come in and there is effort (OBV) with out response indicating demand has increased. Looking for the upward stride to continue.
- NED's at a bit of an inflection point (50/50 pivot point )
- Volume-profile favours the thesis
- Will allocate Short if yellow shaded area is broken
- Alternatively, will look to Long if price breaks above pink trend-line
