Why I believe there's considerable hope for NatWest shares
This is the best performing UK bank share in 2024 so far, and independent analyst Alistair Strang has spotted reason for further optimism.
25th March 2024 07:39
by Alistair Strang from Trends and Targets
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When we reviewed NatWest Group (LSE:NWG)three weeks ago, we dared use some flamboyant language, declaring:
“Our suspicion is we’re about to see NatWest become useful."
This appears to be the case and now, movement exceeding 264p (it’s trading around 261p at time of writing) should prove capable of triggering further price recovery to an initial 278p with our secondary, if exceeded, now calculating at a future 314p.
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Visually, there’s a bit of suspicion the price faces some hesitation around the 278p level, given how the shares have behaved whenever the pre-pandemic high has been challenged, but we’d hope any interference shall be minimal due to the price now trading above the Blue downtrend since 2007.
Also, with the price regaining the Red uptrend since the pandemic low and the market visually confirming this Red line is important, considerable hope is possible for a reasonable recovery cycle.
If things were to go wrong, we’d regard below 234p as a bad thing, risking provoking reversal to an initial 228p with secondary, if broken, a probable bottom and bounce from the 218p level.
For now, the visuals certainly allow considerable hope.
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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