RBS for 5/08/2019

#DAX #BRENT Our previous report on RBS (link here) strongly suspected the price would reverse to 202p. It did, closing Friday at 202.9p! That’s 20p in old money (pre share split) for those who harbor a grudge. The share price is now pretty much at the level of 2009, when the stock market bottomed. Unfortunately for RBS, the share price has been playing chicken with the 2 quid level for a few years but has become dangerous.

There is a slight phenomena which gives some near term hope. The BLUE downtrend on the chart dates back to September 2008. Today, this line is at 200.047p and represents the level RBS share price needs actually close below to justify hysterics. Such a triggering event will make weakness down to an initial 180p calculate as an initial point at which we’d hope for a rebound. If (when) broken, the price should eventually bottom at 150p.

Unfortunately, in the perpetual limbo dance which is RBS, we can calculate lower than 150p… To be realistic, should it ever visit the 130’s, it would become a very tempting Long position to take, just to see what will happen.

For now though, some slight hope for a near term bounce is slightly possible, due to the respect paid to the long term BLUE downtrend from 2008. If we look for immediate clues as to whether any bounce has integrity, above 207.4p calculates with an initial ambition at 211.25p. If exceeded, secondary is a bit more useful and works out at 219p. This should rebound the price to a useful level, just above the RED uptrend and hint “bottom is in”, thus giving the potential of an unusual 3rd target level at 231p, along with some almost certain hesitation.

We suspect it intends 150p eventually, once sufficient excuses for reversal accumulate.

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

2:28:10PM

BRENT

61.21

61.14

60.815

60.12

62.2

62.91

63.335

64.45

61.51

2:33:38PM

GOLD

1441.19

               

2:36:19PM

FTSE

7402

               

2:45:43PM

FRANCE

5371

               

2:50:04PM

GERMANY

11919

11830

11751

11725

11935

11956

11993

12046

11856

2:55:47PM

US500

2934.92

               

2:59:21PM

DOW

26493

               

3:06:53PM

NASDAQ

7698.62

               

3:12:47PM

JAPAN

20926

               

 

 

2/08/2019 FTSE Closed at 7407 points. Change of -2.33%. Total value traded through LSE was: £ 7,006,818,506 a change of 7.38%

This post has already been read 18 times!

One Reply to “RBS for 5/08/2019”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.