Why RBS shares could be about to do something big
30th August 2018 10:06
by Alistair Strang from Trends and Targets
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We're now seeing fairly significant potential changes at RBS. Chartist Alistair Strang examines what could be next for the retail bank.
Royal Bank of Scotland (LSE:RBS)
Our seventh weekly visit to the Royal Bank of Slow is now showing something utterly astonishing which we truly didn't expect.
A fairly significant change in price movement potentials!
Don't get us wrong, the bank share price still looks stuffed but we're starting to wonder at the prices lack of drop.
Our in-house "thing" remains fairly simple. If we're expecting a price to drop but it doesn't, there's a good chance it shall instead go up. Of course, the converse is true but for The Royal Bank of Scotland Group we've been projecting 212p for some time, noting in passing the share has spectacularly failed to actually drop.
In fact, the situation is now slightly moderated as below 239p now suggests weakness to an initial 231p with secondary 220p showing some bounce potentials.
If such a scenario comes true, by all means try a long at 220p should it ever appear and the stop position now can reside down at 204p.
Of course, it's entirely possible RBS's failure to fail is due to politicians taking their annual jolly at Butlins and thus, restricted in their ability to cause damage. As we see from financial volumes through London, people are crawling back to work with the potential of some volatility finally making itself known.
The visuals against the share don't really give a lot of clue as to what's on the agenda, aside from the price now needing better 260p to flag the potential of a near-term fake recovery to an initial 267p with secondary, if bettered, at 277p. Alas, the share price now requires to exceed dark blue at 283p to give any hope a visit to 220p is not scheduled.
Source: interactive investor 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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