BNS, Bank of Nova Scotia.

bns nov 18 2011 bns nov 18 s 2011

The question is, where are the Canadian banks going. The answer is down.

BNS has a very interesting chart and the bank has held up quite well, perhaps because of it’s more international (South America and Caribbean) exposure and better growth prospects. But it should in any case fall to the B-wave level which is at $42.5. In short it is reasonable to expect a 5th wave now. Over the past 4 months the stock has moved no less than 8 times between , roughly, $49 and $53.50 and this is the 5th time it has dropped back to the $49 level. All of this is characteristic for a triangle, either the whole structure or just the tail part as in 4-5-triangle. I prefer the latter but it does not make much difference. The stock should drop about $8 bringing it close to the $42.5 target.