Analysis: new forecasts for NatWest shares
11th July 2022 07:08
by Alistair Strang from Trends and Targets
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Following a largely uninspiring five months for the UK bank sector, independent analyst Alistair Strang has a look at NatWest for signs of optimism.
Several generations of folk must look at the retail banking sector on a Monday morning, say to themselves “I don’t like Mondays” and briefly pay mental homage to a distant tune from an Irish pop group. And then, they all move on, an irritating lyric in their head and a bad taste on the tongue as, once again, the retail banking sector launches itself into another lacklustre week.
With the NatWest Group (LSE:NWG) share price, there have been fits and starts but, unfortunately, the share appears determined to pretend its pre-pandemic high of 230p represents a solid barrier.
There’s very little encouragement going on with NatWest's share price. In theory, now above 230p (Blue on the chart) should trigger price recovery to an initial 248p. If exceeded, our secondary calculates at a game changing 271p, thanks to the price painting a new “higher high”.
We flippantly describe 271p as game changing, due to the retail bank consistently failing to give any reason for optimism but, to be fair, achieving such a price level is liable to be quite important, finally injecting genuine hope into the picture as the share price would attack levels not seen since 2019.
If NatWest intends to misbehave, the share price currently needs to delve below Red (presently 206p), as this risks triggering reversal to an initial 196p with secondary, if broken, at 173p and hopefully a bounce.
Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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