National Australia Bank Ltd. (ASX:NAB) HEFFX Highlights

National Australia Bank Ltd. (ASX:NAB) HEFFX Highlights

National Australia Bank Ltd. (ASX:NAB) HEFFX Highlights

  • Australia’s big four banks rallied in Sydney trading as new capital requirements turned out to be less onerous than expected and the financial regulator signaled they may not get any higher.
  • To ensure they are “unquestionably strong,” Australia & New Zealand Banking Group Ltd., Commonwealth Bank of Australia, National Australia Bank Ltd. and Westpac Banking Corp. will need Tier-1 capital ratios of at least 10.5 percent by Jan. 1, 2020, the Australian Prudential Regulatory Authority said in a statement Wednesday.
  • The average across the banks at the end of last year was 9.85 percent, according to Morgan Stanley calculations, putting the lenders within close reach of the new target.

National Australia Bank Limited is a business bank engaged in providing personal banking and business banking services. The Company’s segments include Business & Private Banking, Corporate & Institutional Banking (CIB), Consumer Banking & Wealth Management, Customer Products & Services and NZ Banking. The Company’s Business & Private Banking focus on medium enterprises (SME) customers, which include NAB business franchise with specialized agriculture, health, Government, education and community services along with private banking and small business segment. CIB includes corporate and institutional banking businesses, fixed Income, currencies and commodities (FICC), capital financing businesses, asset servicing and international branches. Customer Products & Services include banking & wealth products, strategy, digital, NAB labs/ventures, marketing and corporate affairs. Consumer Banking & Wealth Management includes the distribution components of wealth management.

Overall, the bias in prices is: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 31.68.

The projected lower bound is: 29.17.

The projected closing price is: 30.42.

NAT. BANK FPO closed down -0.330 at 30.460. Volume was 18% below average (neutral) and Bollinger Bands were 27% narrower than normal.

Open          High         Low           Close         Volume
30.450      30.695      30.370      30.460      4,989,562

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period      50-period      200-period
Close:                       30.08            30.02              30.46
Volatility:                27                   26                    22
Volume:                  5,412,739      6,400,645      5,431,527

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

NAT. BANK FPO is currently 0.0% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of NAB.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on NAB.AX and have had this outlook for the last 16 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 77.7057. This is not an overbought or oversold reading. The last signal was a buy 16 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 54.61. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 37 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 114.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 34 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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