"... NAB, a whole lot of bull ...".

NAB 15th January 2010

When we last looked at NAB on 30th December 2009, we projected a retracement of price to a target of  $27.85 and in fact we achieved a price of $27.75 on the 5th January. Not bad. In fact we also thought that the retracement back up to this level would be short lved and that NAB would come back down to around $26.72 which in fact it has also done. Each of these moves can be seen in the chart above and the predictions can be verified in the earlier blogs for NAB.

Looking at the chart above the price action seems to have stalled and is channelling between the previous upper target of $27.81 and the lower target of $26.72.

My strategy for this situation is to be patient and see whether the wave three continues by price breaking to the down side or if price breaks the $27.81 level to the upside to also continue in a wave 3.

The weekly and monthly charts would seem to give the weighting to an upside breakout and with this in mind the upper price targets would be $30.09 as a first conservative target with a more aggressive target as $32.14.

The first target lines up with the 1.6 Fibonacci level whilst the second target lines up with both the MOB target taken from the previous wave 4 high as well as the 1.618 Fibonacci level.

Time will tell, but here's hoping NAB will be serving up a whole lot of bull.

Cheers