When to take the RBS recovery seriously
With RBS shares in a lacklustre state, our chartist looks at the essential target levels.
23rd May 2019 09:46
by Alistair Strang from Trends and Targets
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With RBS shares in a lacklustre state, our chartist looks at the essential target levels.
RBS (LSE:RBS)
Another visit to the The Royal Bank of Scotland Group (LSE:RBS) share price shows that the bank has performed pretty much as expected. Our prior report (link here) was notable in lacking any confidence for an immediate share price recovery and now, we need to examine the risks associated with breaking our initial target.
Source: Trends and Targets Past performance is not a guide to future performance
With the share price breaking below 219.5p, it enhances the probability of any near-term bounce being short lived. When we review the immediate downtrend, the demand is for anything above 228p apparently suggesting the speed of descent has eased, allowing recovery to an initial 235p.
This, while fairly useful, unfortunately ensures the share price remains in the drop zone with 202p offering the chance of a probable "real" bottom.
Only above 238p shall we start taking any recovery seriously as this will trash the immediate drop prospects and take the share into a region where 248p presents a target.
For now, below 216p still suggests 202p as providing a "bottom" but secondary, if broken, comes along at 177p eventually.
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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