Interactive Investor

NatWest shares and 'mild' optimism for the future

31st August 2021 08:29

Alistair Strang from Trends and Targets

Still not far from their highest in 18 months, independent technical analyst Alistair Strang shares his latest outlook for NatWest.

Relying on chart indicators, while fraught with danger, also involves relying on common sense, especially when dealing with the markets.

NatWest Group (LSE:NWG) finally broke above its Blue longer term downtrend, the share price enthusiastically celebrating by failing to reach our (previous) initial breakout target of 226p. Does this imply inherent weakness or perhaps, something else?

The chart below shows how the share price has performed during August. Critically, despite a plunge to 209p, the last three weeks has seen the share fail to close below the point of the break of the Blue downtrend. Our in-house rules suggest it is now ‘just’ a matter of time until the share reaches its target level.

The current situation suggests movements above 220p should next head toward 229p, with our longer term secondary still presenting 251p as a viable ambition.

Source: Trends and Targets. Past performance is not a guide to future performance.

Of course, the other implication of these dance steps will be of a share price executing a series of ‘higher highs’, with the result that our Big Picture scenario can be adjusted slightly for those blessed with infinite patience (or more probably, trapped at higher levels due to 10:1 share price consolidation) at 332p. This, of course, is really a dismal 33.2p in old money.

For now, we’re mildly optimistic for the future.

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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