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%