Above the downtrend traced back to 2008, our chartist forecasts where the shares will end the month.
Royal Bank of Scotland
We cheerfully skipped a September report for The Royal Bank of Scotland (LSE:RBS). It 'successfully' hit our initial bounce target of 196p and exceeded it, alas fading at 218p, just below our secondary of 220p. We suspect achieving 220p shall prove very significant, if any rise is to be taken seriously.
If we pause for a moment and consider what's unlikely to happen, above 220p now suggests recovery to an initial 238p. If exceeded, secondary calculates at a longer term 282p.
We're pretty far from convinced, thanks to the visuals. Growth to target levels as postulated suggest a coming series of "higher highs", along with the potential of some serious long-term growth.
Like everyone else, we watch the news and "long-term growth" and "banking sector" are terms which rarely appear together!
Surprisingly, the RBS share price has now exceeded the long-term downtrend since 2008 and the inset on the chart below highlights how the share's closing price has reacted to this momentous occasion.
After a brief surge upward, the rise faded and, visually, we believe it intends to dribble down to 178p next, probably carefully above the blue trend line.
If this is the case, 178p should appear just before the end of this month. The real danger comes with any break below 178p as reversal now to 142p (and hopefully a bottom) calculates as possible.
Failing that, there's a pretty solid hope it "must" (aka might) bounce at 100p.
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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