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National Bank Of Greece (ADR) (NBG) - Technical Analysis
Bidness Etc’s technical analysis reveals that the stock needs to break out above $1.35, in order for a bullish reversal
National Bank Of Greece (ADR) (NBG) - Technical Analysis
NBG
By: TROY KUHN
Published: Aug 7, 2015 at 10:20 am EST
National Bank of Greece (ADR) (NYSE:NBG) stock has been a subject of acute volatility this year, much of it generated on the back of events playing out in the Greek saga. Stock movements have been sensitive to announcements in relation to the debt crisis, rising/plummeting to latest developments.
Shares have shed more than 50% of their market value year-to-date (YTD). The stock is down over 97% since the crisis first erupted. Although a number of investors have fled on their investments, those still holding onto their shares are in the search for a recovery point that could pave the way for future gains.
In recent news, there was talk of Greece reaching a conclusion to bailout negotiations that are nearly six months into the year. Greece’s Prime Minister Alexis Tsipras, while addressing the Agriculture ministry in Athens on Wednesday, said: “We are in the final stretch. Despite the difficulties we are facing we hope this agreement can end uncertainty on the future of Greece.”
Reports of a third bailout package unlocking soon restored a significant portion of lost sentiment. National Bank of Greece stock soared over 17% to close at $0.84 in yesterday’s trade. This came as a significant breather to investors who, prior to yesterday’s rise, had battled with a 20% decline on their holdings.
Technical Analysis
Based on yesterday’s closing price of $0.84, a technical analysis of National Bank of Greece stock reveals an immediate support anchored at $0.695. For investors looking for a recovery point, the stock is developing follow-through strength toward $0.881. Given that the stock manages to reach this point, the stock would push for a recovery towards $0.996 and $1.18. Additionally, National Bank of Greece stock is expected to rise on an inner support level of $0.81.
As far as the stock’s 14-day relative strength index (RSI) is concerned, National Bank of Greece has formed a number of bottoms above a reading of 30. This indicates a weakening downward momentum for the stock. However, despite this slightly positive point, the overall trend for the stock continues to head south. National Bank of Greece stock needs to breakout above $1.35, in order to generate a bullish reversal.
Strategy
The stock has considerable risk below a price of $0.695. A strategic move for investors would be to Buy upto a price of $0.81. If the price manages to rise above $0.881, investors should hold on, targeting the $1.18 level. National Bank of Greece stock is down 0.84% in pre-market trading today as of 09:27 AM.
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