The Bank of Nova Scotia provides various financial services in North America, Latin America, the Caribbean and Central America, and the Asia-Pacific. It offers financial advice and solutions, and day-to-day banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and related creditor insurance to individuals and small businesses; and commercial banking solutions comprising lending, deposit, cash management, and trade finance solutions to medium and large businesses, including automotive dealers and their customers.
Take a look at the 1-year chart of Nova (NYSE: BNS) below with added notations:
BNS has been trading sideways over the past month or so. While in the sideways range, the stock has formed a support area around $60 (green), and a level of resistance at $63 (red). At some point, the stock will have to break out of the current trading range.
The Tale of the Tape: BNS is trading within a sideways range. The possible long positions on the stock would be either on a pullback to the $60 level, or on a break above $63. The ideal short opportunity would be on a break below $60.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT