How much further can NatWest’s share price recovery go?
It remains very much a ‘jam tomorrow’ stock and will only go higher if it does this.
23rd November 2020 07:57
by Alistair Strang from Trends and Targets
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It remains very much a ‘jam tomorrow’ stock and will only go higher if it does this.
The ‘Curse Of Oak Island’, a TV program, proves reminiscent of banking shares. The treasure hunt, now in its eighth year, focusses on an island off the coast of Nova Scotia, Canada and two brothers attempting to empty their bank accounts as they excavate for buried treasure.
The UK’s retail banks feel like this TV program, always promising “something” but rarely delivering anything of value.
NatWest Group (LSE:NWG) provides a perfect example. Currently, the share price needs to exceed 236p, just to hint it is showing some genuine recovery. Unfortunately, at present, the best on offer is the possibility of movement next above 158p bringing slight recovery to an initial 165p. Could it be, if 165p is exceeded, there may be treasure hiding at 190p in the future?
Visually, the answer is “yes” but such an ambition fails to ring any celebratory bells, coming nowhere close to the level at which real hope can be offered to long suffering investors in the retail bank which was once Royal Bank of Scotland.
Despite a share price of 155p currently, thanks to the 10:1 share consolidation, this actually is 15.5p in old money. Despite the current potential of 190p on the immediate cycle, only with closure above 'blue' on the chart will we be provoked to mention of 365p as a valid (and distant) hope.
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.
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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