C$104.50 support keeps Scotiabank stock in a stable range

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Scotiabank slips 0.54% to C$105.59

Highlights

BNS trades in a bullish structure across short, medium, and long-term timeframes, holding above major moving averages.
Momentum indicators show strong buying interest but signal caution as the asset approaches overbought conditions with a weak trend.
For the next five trading days, price is expected to move between C$104.50 support and C$108.00 resistance, with a high probability of upside.

Mixed momentum signals temper overbought risk amid weak trend

On the technical front, BNS closed above the SMA-20 (C$104.95), SMA-50 (C$100.49), and SMA-200 (C$95.59) levels. The Ichimoku Kijun (C$103.74) is established as immediate support. Daily momentum signals present a mixed picture: MACD is on a strong buy signal, RSI is 59.47, and CCI is reading 64.33, both suggesting ongoing buying pressure. However, Stoch RSI is neutral, and the ADX at 15.93 signals a weak trend. BBP at 0.82 points to overbought conditions intraday, while the Awesome Oscillator is neutral. The asset traded near its daily low under subdued volatility, and the divergence between BBP’s overbought signal and the weak ADX trend invites some caution.

Sideways bias with upside favored on strong weekly signals

Over the next five trading days, BNS is expected to fluctuate within a typical volatility band between C$104.50 and C$108.00. Weekly indicators, including MA-50, RSI, ADX, and MACD, collectively point toward a high probability (greater than 80%) of further price gains, with declines substantially less likely. The baseline outlook is for sideways action within support and resistance boundaries; a decisive break above C$108.00 would imply renewed upside momentum, while a close below C$104.50 would challenge near-term support levels.

Anton Kharitonov, expert at Traders Union, sees BNS holding above its key moving averages but notes weak trend momentum and mixed signals across indicators. The trading range between C$104.50 and C$108.00 looks likely to persist, with upside gains possible but not strongly supported by volume or trend strength. He maintains a cautious stance given overbought conditions and lack of clear direction. "My approach is to stay defensive here — unless C$108.00 is clearly broken, the risk of a failed upside move remains high."

In a recent review, analysts highlighted Scotiabank's resilient technical strength and the likelihood of near-term price consolidation. The current analysis not only reinforces this constructive outlook but also underscores that a sustained move above C$108.00 would serve as a fresh catalyst for renewed upside momentum.

Source of Data: BNS Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.