Nomura Gets Hammered After Archegos Margin Call, Watch This Level

Yesterday, leading financial firms, Credit Suisse (CS) and Nomura Holdings Inc (NMR), disclosed that a client fund, Archegos Capital Management, defaulted on margin calls and was forced to liquidate positions. Credit Suisse said the loss resulting from this exit “could be highly significant and material” to its Q1 results. Both Credit Suisse (CS) and Nomura Holdings Inc (NMR) stock sold off sharply on the news. Nomura (NMR) stock fell below the 50 and 100-day moving averages. This puts the stock in a weak technical position on the charts. The stock also dropped on heavy volume indicating further damage is likely in the share price. Today, Nomura (NMR) stock is trading lower by 0.11 to $5.68 a share. 

The next major chart support level for Nomura (NMR) stock will be around the $4.75 level. This support area is where the stock was defended in early November 2020 before breaking to a new 52-week high. This key support area is also a major retrace level from the March 2020 lows to the recent March 26th, 2021 top. This retrace should also help the stock be supported around this important level. Either way, traders must be very careful at this time as the stock will likely have a further downside in the near term.   

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