National Bank of Canada Shares Face Short-Term Corrective Phase

Raymond James has identified a short-term corrective phase underway for National Bank of Canada shares. The firm points to negative price momentum, weakening relative strength versus the S&P/TSX Capped Financials Index, and early signs of institutional selling pressure as indicators of this trend.

The stock recently moved below its 50-day moving average at approximately $224.18 and is positioned to test support near $212.11. A multi-day close below these levels would confirm an intermediate-term corrective phase and open the door for a test of support at $210.47, representing 1.9% downside from current levels.

If National Bank of Canada's shares drop below $210.47, they could face a test of the 40-week moving average at approximately $197.28 and major support near $187.92, which would represent 8.1% and 12.4% downside respectively from current levels.

The firm notes that if National Bank of Canada's shares are unable to stabilize above its 40-week moving average, it may be necessary to reduce exposure.