Nedbank - Breakout from Bearish Pennant
South African banks are bearing the brunt of the economic impact of COVID-19 and lockdown.
Fundamentals:
Technicals:
A retest of the March lows is possible.
Target 1: 78.00
Target 2: 67.30
Stop Loss: 113.51
Our banks are robust and well-positioned to weather the current economic storm. Their price-to-book ratios are currently incredibly low and make for an attractive long-term play. The short-term outlook, however, is bleak.
Fundamentals:
- Prior & ongoing recession
- Weak ZAR
- Low interest rates (limited profitability)
- Decreased business activity
- Pervasive credit losses & impairments
Technicals:
- Breakout from bearish pennant
- Decreasing RSI (not oversold yet)
- Share price below 6SMA & 20SMA
- 6SMA crossed 20SMA to the downside
A retest of the March lows is possible.
Target 1: 78.00
Target 2: 67.30
Stop Loss: 113.51
Our banks are robust and well-positioned to weather the current economic storm. Their price-to-book ratios are currently incredibly low and make for an attractive long-term play. The short-term outlook, however, is bleak.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.