Hope for NatWest shares after recent mauling?
The bank remains stable and profitable, but investors focused on the negatives last week, sending shares to their lowest since early 2021. Independent analyst Alistair Strang updates his numbers.
30th October 2023 07:41
by Alistair Strang from Trends and Targets
The market gave NatWest Group (LSE:NWG)'s share price a thorough kicking on Friday. When we reviewed the share three weeks ago, we expressed concern at the implications if the price managed to slip below 204p as it risked a cycle downhill to 109p.
The share price managed to accomplish this last Thursday, a low of 202.7p providing the precursor for a truly awful -18% day, dumping the share price in a zone where escape looks difficult.
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Despite the share closing the day ‘only’ down 12% at 182p, we suspect the worst is not yet over. We can however introduce some slight hope into this Halloween horror story as the drop potentials have changed slightly since our previous review.
Now below 167p calculates with the potential of reversal down to an initial 161p with secondary, if broken, at 135p and a fairly reasonable expectation of a bounce. But should 135p break, our perception of the future now allows for 111p as an ultimate bottom.
As a result, some care needs taken as the market will be perfectly aware lots of folks will be trying to buy in at what they perceive as a market bottom. We shall only be convinced if the share price were to somehow find an excuse to better Blue on the chart, currently around 230p.
Source: Trends and Targets. 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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