UPDATE Nedbank heading nicely up to R238.56UPDATE from last time.
I thought we would get a bit of a pull back before the upside push, but I was mistaken.
Regardless, the price was expected to move up and up it is going.
This W Formation that formed and broke out gave a decent Risk to reward 1:2. And At this point where the R:R =1 it's even safe to bank half profits and move stop loss to breakeven.
7>21
RSI>50
Target remains at R238.56
ABOUT THE COMPANY
~ Nedbank Group Limited, commonly known as Nedbank, is one of the largest banking groups in South Africa. (Part of the Big Five!)
~ The company was established in 1888 and is headquartered in Johannesburg, South Africa.
~ Nedbank is a subsidiary of Old Mutual Limited, a financial services conglomerate.
~ The bank operates in various segments, including Retail and Business Banking, Corporate and Investment Banking, and Wealth Management.
~ Nedbank offers a wide range of financial products and services, including personal and business banking, loans, mortgages, investments, insurance, and asset management.
~ The company has a significant presence in South Africa, with a network of branches and ATMs across the country.
~ Nedbank has also expanded its operations internationally and has representative offices in several African countries, as well as operations in other regions such as the United Kingdom.
HOW NEDBANK GOT ITS NAME
Nedbank's name is derived from its historical roots.
When the bank was established in 1888, it was originally known as the Nederlandsche Bank en Credietvereeniging voor Zuid-Afrika (Dutch Bank and Credit Union for South Africa).
Over time, the name was shortened to Nederlandsche Bank voor Zuid-Afrika (Dutch Bank for South Africa) and eventually to Nedbank.
The name "Nedbank" reflects the bank's Dutch heritage and its focus on providing banking services in South Africa.
Nedbank
Big 4 SA Banks - 1W Channel Breaks I would have thought that bearishness in the SA banking sector is a thing of the past, with earnings showing bank balance sheets & prospects to be more robust than feared in the Covid sell-off. However their consistent grind higher since call it Jun/Jul last year looks to have stalled, with the Big 4:
- Showing channel breaks on their 1W charts,
- All trading in the no mans land between 15 EMA & 200 DMA,
- Negative momentum (RSI,MACD)
- Strong $ / weakening ZAR not positive for their outlook
Never thought I'd say it so soon into the recovery but, in a short term time frame, time to short SA banks? Or, if you have time to sit it out and an appetite for drawdowns, a good buying opportunity here?
Not shown is 1W the Capitec chart - with a few spinning tops that one could go also either way IMHO
JSE:FSR JSE:SBK JSE:NED JSE:ABG JSE:CPI
Double Top forming on NedbankAlthough not confirmed yet, JSE:NED seems to be forming a double top pattern.
Here is the definition of a double top from investopedia: A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs.
Although it still has quite a distance to go, if it continues down and breaks through the "neckline" I think we could see a nice downward move all the way to the support level at around 15250. I will be waiting for confirmation before entering.
Wave 5 Up or Break Down for Nedbank?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 is Nedbank Group's majority shareholder, with a 54.05% ownership of the group. The group provides a wide range of wholesale and retail banking services and a growing insurance, asset management and wealth management offering through four main business operations, namely Nedbank Corporate and Investment Banking, Nedbank Retail and Business Banking, Nedbank Wealth and Rest of Africa.
Technicals
This is a bearish structure formation so ultimately I expect a break to the downside. AS things stand now, I am expecting wave 5 to complete before the downside will occur. Price broke above the orange trend line indicated on the chart which leads me to believe that wave 5 is likely. There is however a possibility that a larger correction will form so be weary of reversal signs.