NatWest Group shares could hit a glass ceiling here
The retail banks continue to show recovery signs. Our chartist sees where things could be heading.
12th October 2020 10:08
by Alistair Strang from Trends and Targets
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The retail banks continue to show recovery signs. Our chartist sees where things could be heading.
NatWest Group (LSE:NWG)
The retail banks, or as we call them, the clown sector of the FTSE 100, continue to show signs of recovering from the limbo dance of share prices.
NatWest managed to achieve our previous suggestion of 90p, taking the price below that achieved when the banking sector collapsed in 2009.
Actually, the price bounced slightly above our 90p target, thus allowing some hope for the future.
Presently trading around the 113p level, the share needs next trade above 116.5p to confirm our fledgling optimism as this is supposed to trigger continued recovery to an initial 124p with secondary, if exceeded, a marginally more respectable 137p.
Visually, there's every chance the 137p level shall provoke some hesitation if achieved.
This price level matches the immediate high following the March Covid drop and again, matches the high of last June.
Experience tends to teach us to watch out for glass ceiling levels and this one certainly appears a willing contender.
Only with closure above 137p dare we believe things shall become really interesting as it becomes easy to postulate continued longer-term oomph in the direction of 192p.
If it all intends to go wrong, the share needs to drip below the 100p level as reversal to 90p is expected, hopefully with another bounce.
There's a serious problem below 90p as bottom, if this level breaks, now calculates down at 69p.
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.
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