NatWest PLC for 21/09/2020

#Gold #Dax As mentioned on Friday, we think the UK banking sector is almost at a logical bottom, the point where some sort of rebound can be hoped. In the case of #NatWest, this now translates to a share price drop potential around the 94p level. But only if we apply share price movements since the March Covid-19 drop. If we opt to zoom out and search for further reasons to be miserable, our secondary drop potential stinks.

The immediate situation is fairly straightforward.

 

Weakness next below 96.6 risks promoting reversal down to 94p next but unfortunately, thanks to a couple of price manipulation gaps in the last few months, this number could extend down to 90p. We’d hope for a rebound in the 90’s, if only due to the historical low of RBS share price back in 2009 when it bottomed at 9.8p during the last stock market crash. Of course, 9.8p translates as 98p thanks to the share price experiencing 10:1 consolidation. However, it’s worth remembering, if we adjust Friday closing price of 96.88p, the share is already below its prior all time low as the share is really at 9.688p.

Our calculations allow a secondary, should the 90p level break, at 70p and a price level where we’d hope for a real bounce. In fact, ideally we’d hope for a rebound to occur somewhere between the two drop levels as this will imply some residual strength in the share price. Natwest is not a happy share at present.

 

For any miracles to occur, Natwest needs trade above 101p to ideally enter a cycle to an initial 110p. If exceeded, our secondary calculates at 121p.

FUTURES

Time Issued	Market	Price At Issue	Short Entry	Fast Exit	Slow Exit	Stop	Long Entry	Fast Exit	Slow Exit	Stop	Prior
2:26:37PM	BRENT	43.46									‘cess
2:38:46PM	GOLD	1950.86	1944	1935	1922	1956	1960	1967.5	1979	1948	Success
2:41:20PM	FTSE	6003.5									‘cess
2:45:07PM	FRANCE	4970									Success
3:11:57PM	GERMANY	13158	13096	13032.5	12954	13151	13158	13183	13226	13103	Shambles
2:06:40PM	US500	3326.59									Shambles
2:10:01PM	DOW	27721									‘cess
2:14:12PM	NASDAQ	10957
2:20:10PM	JAPAN	23209

18/09/2020 FTSE Closed at 6007 points. Change of -0.69%. Total value traded through LSE was: £ 9,442,217,884 a change of 120.95%

17/09/2020 FTSE Closed at 6049 points. Change of -0.48%. Total value traded through LSE was: £ 4,273,425,233 a change of -23.19%

16/09/2020 FTSE Closed at 6078 points. Change of -0.44%. Total value traded through LSE was: £ 5,563,460,983 a change of 15%

15/09/2020 FTSE Closed at 6105 points. Change of 1.31%. Total value traded through LSE was: £ 4,837,644,674 a change of 35.92%

14/09/2020 FTSE Closed at 6026 points. Change of -0.1%. Total value traded through LSE was: £ 3,559,218,269 a change of 1.56%

11/09/2020 FTSE Closed at 6032 points. Change of 0.48%. Total value traded through LSE was: £ 3,504,460,601 a change of -8.69%

10/09/2020 FTSE Closed at 6003 points. Change of -0.15%. Total value traded through LSE was: £ 3,837,937,083 a change of -13.67%