Earlier this month NAB crossed 40 day simple moving average into bullish zone ie. SP moved above the 40 MA line. The cross occurred at $24.
Historically, when this happens, the SP moves at least $1 or more above the cross.
Unfortunately, I am bit late with this report, SP already moved somewhat, but there could be more.
Significance of 40 SMA was first brought to my Attention by Robbb who does some pretty good charts on this forum.
From my observations there is something about this indicator with the momentum and swing that works. I have some ideas of my own why this is so, but have not really done enough research to test them.
But meanwhile I got some NAB with trailing stop and waiting for further developments.
BTW Telstra is struggling right on 40SMA , it was above it since end of November, when it crossed at around $2.65. Max gain there was 30c or about 12.5% in less then a week.
At this time TLS is still in safe territory IMO, but only just, if it does not move up at least few cents above $2.80 in next few days, it could tank. Disclosure: holding some short put options TLS Feb and Mar. They starting to look little risky.
NAB Price at posting:
$24.84 Sentiment: Buy Disclosure: Held
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