The NAB.ASX chart goes into what looks like a solid opening market this morning with an interesting chart pattern
NAB’s share price faltered recently when its latest quarterly report left the market underwhelmed. Despite a generally solid outcome, the market had been looking for better cost control than NAB managed to achieve. After rallying 11% in a near vertical rise over the 2 weeks prior to the report, NAB gapped lower on the day of release and has since moved broadly sideways in a choppy market.
From a chartists point of view all this has served to create a classic “pennant “pattern. From here, chartists would generally see a clear break through the top of the pennant resistance line as an indication that the steep uptrend leading into it might be set to resume.