Bank of Nova Scotia stock price forecast: CC$120.55 resistance as BNS trades flat

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Bank of Nova Scotia up 0.85% today

Highlights

Bank of Nova Scotia raised its common-share dividend, signaling management confidence and directly increasing shareholder returns.
The rollout of new AI tools to over 71,000 employees under the Scotia Intelligence platform underscores ongoing investment in productivity and future growth.
BNS/CAD displays strong bullish momentum with price expected to remain between C$116.31 and C$120.55, though overbought indicators suggest potential near-term consolidation.

Dividend hike and AI tools drive improved market sentiment

Bank of Nova Scotia has raised its common-share dividend, providing a direct boost to shareholder returns and signaling management's confidence in the company's capital position. The recently announced expansion of the Scotia Intelligence platform, with new AI tools being rolled out to over 71,000 employees, highlights ongoing operational investment intended to enhance productivity and support future growth. Additionally, the early redemption of a US$50 million callable note for a total cash payment of US$52.73 million improves balance sheet flexibility and may reduce future interest expenses, collectively strengthening market sentiment toward the stock.

Overbought signals emerge as multi-timeframe buy setups persist

Technically, BNS is trading above its MA-20, MA-50, and MA-200 on the hourly timeframe, confirming alignment across short-, medium-, and long-term trend indicators. The Ichimoku Kijun sits at C$115.81, serving as immediate support. MACD and ADX both indicate a Buy setup, but oscillators such as RSI, Stoch RSI, CCI, and BBP are all in overbought territory, suggesting strong buying pressure and some risk of short-term exhaustion. The Awesome Oscillator is neutral and does not currently reinforce existing directional signals.

Bullish outlook prevails amid breakout and downside risk zones

For the next 2–3 trading days, the forecast price range for BNS is C$116.31 to C$120.55 based on current volatility. There is a high probability scenario (78%) of an upward move, with the base case projecting the price to remain within this band. Should BNS break above C$120.55, bullish momentum could carry it toward higher resistance levels; a drop below C$116.31 would introduce downside risk toward lower support.

Anton Kharitonov, analyst at Traders Union, sees Bank of Nova Scotia's dividend hike and AI rollout as positive but notes potential near-term headwinds. He believes the technical setup confirms buying interest yet warns of overbought signals and possible exhaustion. The base case is for the price to remain between C$116.31 and C$120.55 over the next few sessions, but a break below support could add downside risk. "Despite improving fundamentals, I remain cautious until BNS confirms strength above C$120.55 with sustained volume."

Earlier, analysts noted that Bank of Nova Scotia was exhibiting sustained bullish momentum, underpinned by solid financial results, dividend increases, and ongoing digital initiatives. The current analysis reinforces this view with evidence of increased operational investment and improved balance sheet flexibility, highlighting the importance of monitoring a potential breakout above C$120.55 as a signal for continued upside.

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.