Sunday, July 13, 2008

The Bank of Nova Scotia Analysis for 07.13.2008

THE BANK OF NOVA SCOTIA - BNS-TC
Monthly chart shows price made a lower high in June 2008, where bears came out in force, taking price back down to test its March 2008 low. No buy signal/pattern evident on this timeframe.
Weekly chart better shows the lower high made in June 2008. Price is currently below all key moving averages, and the bears have managed to take back more than 62% of the gains made since the March 2008 low. No buy signal/pattern evident on this timeframe.

Daily chart shows price has been in a small consolidation range, and what looks to be wave 4. Bears gapped down the open of Friday's trading session in their haste to exit their positions. Once this small consolidation wave is complete, we should see a lower low. First downside target off the daily timeframe is at the .786 fib level of $44.27. Eventually we should see a break of the march low, as we head below $42 level to $39.20 and then to $35.50.

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