NAB is not our preferred bank, but it is at an attractive level now, as are ANZ and WBC. We can see on this weekly chart here that the stock bounced off the bottom of its recent range. Since peaking 13 months ago, the stock has drifted back to form a flag formation. It is taking a breather before a continuation of the overall uptrend. With interest rates likely to head south again, and investors taking on a more defensive attitude, NAB and the rest of the banks will start to see some buying again. Next year’s forecast yield, grossed up to include franking, sits at nearly 8.5%. Now that NAB is rallying off the bottom of the recent range, we expect a move up towards resistance in the mid $34’s. A breach of that will see NAB push beyond last year’s high.
