Hi Jaysee,I agree wth your analysis of NAB. The chart below...

Hi Jaysee,

I agree wth your analysis of NAB. The chart below shows NAB over the last 2 years, so if an impulse down has commenced, it is likely to be Wave C in a big fat correction down since Thursday 6 June 2002. As you suggested, the MACD and RSI very much favour this interpretation.



All the right proportions, etc, of the 5-wave impulse down are there. The only bug I can see with the 5-wave impulse down is Wave 5... it is shown in the Bigcharts image below, and as you can see is a messy affair. If it is Wave 5, then I would think it is an ending diagonal unless someone can resolve it into an impulse.



The move up from $31.85 on 25 July 2003 does look like a zig-zag correction. If all this is correct, then a nice shorting opportunity is looming in NAB, with the 3rd of C down about to start. In my mind, the safest approach would be to wait for confirmation of an impulse down from $33.08. Otherwise, a more agressive approach might be to use a breach of $32.70 as confirmation.

What with the ongoing saga of CBA grinding on a bit, I think I'll keep a close eye on NAB now. Thanks for the lead!

Regards,

Ultrafart.