Bank of Nova Scotia and The Curse of Oak Island
22nd December 2021 08:38
by Alistair Strang from Trends and Targets
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A favourite TV programme was a great hook for analyst Alistair Strang to investigate this Canadian bank. Looks like he may have found treasure.
The Curse of Oak Island, a weekly TV festival of folk digging holes in the ground while looking for buried treasure, takes place in Nova Scotia, Canada. The documentary series, while quite risible in places, has proven quite addictive despite the show tending to glaze over a fairly important detail.
However, with Nova Scotia promising great things, it was difficult to ignore Toronto Exchange traded Bank of Nova Scotia (TSE:BNS) suddenly appearing as a ‘Strong Buy’ in our daily tech digest! Faster than an Oak Island treasure hunter, we delved into the numbers to see if anything interesting was coming.
Thankfully the answer looks like being “yes” as the share is already trading above its pre-pandemic level of 75 Canadian dollars and better still, opted to start December with a new all time high.
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Presently trading around C$86, the price now needs better just $89 to enter a cycle to an initial $95. If bettered, our longer-term secondary calculates at $103.
For everything to go horribly wrong, the share price currently requires below $80, as such a movement would threaten a reversal cycle which would hopefully rebound at the $65.
Similar to our favoured TV show, this looks worth watching.
Source: Trends and Targets. Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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