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The shares of National Bank of Greece (NYSE: NBG) are worthless. Any reader who has followed the Eurogeddon story this year likely came to the same conclusion. Numerous countries in southern Europe are in trouble, but Greece appears to be the most likely to default first.
A May 15 article covered a few ways to profit from a likely Greek default. One of the ways was obvious… sell or short shares of the National Bank of Greece.
In the ensuing weeks the shares of NBG quickly fell nearly 50% to $1.12. The near 50% decline prompted another article that listed a few other opportunities that could arise during a Greek default. However, NBG remained an active trade until the shares could move past $2 to the upside.
To the bulls’ delight, the shares of NBG bounced from $1.24 to $1.98 during the four days following the Greek elections. However, the bears protected an important resistance zone – $2 – despite a monster move higher to $1.98.
The $2 stop loss level was never hit. This offered traders another chance to sell the stock near resistance. And as you can see, the shares quickly sank to $1.50.
It continues to look as though the stock is heading for zero. Bearish traders can push their stop level down (from $2) to $1.84.
This chart shows the price of NBG shares along with an important resistance area for you to monitor
Equities mentioned in this article: NBG