National Bank Of Canada stock last year performed brilliantly for my Canadian portfolio. The returns were above average with a double-digit return. Since December though, the stock has rallied from a strong correction and then pulled back setting up what would appear to be a probable bear stock chart pattern.
There are though a number of things I like about this small Canadian bank including the 33% dividend increase in just 3 years.
National Bank of Canada Stock 3 Year Chart
Looking at the 3 year chart you can see that picking the areas for trading is a lot easier than perhaps at first glance. The stock was in an uptrend which has now been broken. Below $38 the stock is definitely undervalued based on its present revenue, not just the 2015 projected revenue numbers. Fair value rests between $38 to $40. Anywhere below $45 the stock is reasonable value especially if it can be picked up on a dip and sold in a bounce. Above $5 the stock is starting to be overvalued but above $48 it is definitely overvalued based on revenue numbers and earnings potential.
With the stock dipping into reasonable value at levels not seen since the summer, the stock is setting up some trades for very good profits in my opinion at reasonable levels. This fits in perfectly with my strategy outlined in “9 Tips To Stay Profitable in 2015“.
The rest of this article is a trade alert and full strategy discussion on National Bank of Canada Stock for Members.
National Bank Of Canada Stock (NA) Trade Alert for Jan 20 2015
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