NatWest and what's next for the share price
After predicting an incredible rally that followed the high street lender's latest results, independent analyst Alistair Strang reveals new share price targets.
29th July 2024 07:38
by Alistair Strang from Trends and Targets
With the stock market readying itself to hibernate for August, all we can immediately point to is our forecast for NatWest Group (LSE:NWG)three weeks ago. We predicted some hesitation was expected at the 340p level and wow, did it happen! The share price hit 340p last week.
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We shall admit to being a little smug but were truly surprised on Friday, when the bank share price produced a substantial gap, propelled over the nasty 340p level and gapped up by a significant 25p to a price level not seen since 2015. This means we now need to open the Big Picture door and adopt a different outlook.
Source: Trends and Targets. Past performance is not a guide to future performance.
Essentially, now above 369p indicates a potential lift to an initial 377p with our secondary, if beaten, a longer-term 396p. Overall, our calculations highlight 470p as the ruling attraction for NatWest.
What’s a bit odd about this is the irritating difficulty we are experiencing trying to find a reason for the price being “gapped up”. It’s usually the case we get busy with our crayons in an invariably successful attempt to find a trend line we missed. Worryingly, in this instance, we cannot establish any sort of trend, but only can come to the dodgy conclusion the market somehow managed to use the same arithmetic we did, a calculation which pointed at 340p as being a problem.
For NatWest now to fall into the clutches of despair, the share price needs below an unlikely 300p.
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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