The NAB chart has hit the top end of a zone of support between about $30.90 and $31.80. This is shown by the dashed blue lines on the chart below and is the price range where the stock has consistently bottomed out since February last year. For good measure the 38.2% Fibonacci retracement of the whole $19.40/39.23 rally now also intersects at this level

With its capital raising behind it and this year’s dividend likely to provide a yield of around 6.2% before franking, you’d have to think there's a good chance this support range will again prove effective.

However, there is a more bearish chart scenario. This would be an AB=CD formation that would see the current downward correction extend to the 61.8% Fibonacci retracement level around $27. Certainly this looks possible chart wise but we’d need some unforseen bad news to get the stock price down to these levels. As things currently stand, at $27, NAB would be trading on a prospective dividend yield of 7.3% before franking which looks a bit too generous to me.

NAB Chart Weekly Click to enlarge NAB Chart Weekly
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