Raymond James Sees National Bank of Canada Stock Weakness Ahead

Raymond James has identified a fresh short-term corrective phase in National Bank of Canada (TSE:NA) shares, citing negative price momentum, deteriorating relative strength against the TSX Composite, and early evidence of institutional selling pressure.

The stock has recently slipped below its 50-day moving average at roughly $224.18 and appears set to challenge initial support around $212.11. If the shares log a multi-day close beneath those levels, that would confirm an intermediate-term correction is underway and clear the way for a test of support at $210.47, representing about 1.9% downside from current prices.

A weekly close below $210.47 would put the next targets in play: the 40-week moving average near $197.28 and major support around $187.92, corresponding to potential drops of 8.1% and 12.4% respectively. The firm argues that a failure to stabilize above the 40-week moving average would justify reducing exposure.

The stock's relative price momentum versus the S&P/TSX Capped Financials Index is pulling back on the monthly chart while improving on the weekly chart. That divergence suggests the shares are starting to strengthen and attempting to carve out an intermediate-term relative price low within a broader uptrend.

National Bank of Canada is trading above a volume consolidation zone between $180 and $170, which should offer additional support during any future intermediate-term corrections. On the upside, a breakout beyond resistance near $222.99 would cement the stock's position as a relative leader within the wider S&P/TSX Financials sector.

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