A chartist's view of NatWest shares and bitcoin's potential
Shares in UK banks reacted positively to the US election result, but the euphoria didn't last. Independent analyst Alistair Strang assesses prospects for this lender's share price. He also has a look at bitcoin.
11th November 2024 07:25
Our previous review of NatWest Group (LSE:NWG) appears to have proven rather prescient, Donald Trump indeed becoming President Elect of the USA and NatWest indeed reaching our initial and secondary targets. The bank even managed to fail to close a session above 394p. The big deal comes from the fact that a victory for Trump is supposed to signal a release of the chains dragging the retail banking sector to a standstill.
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Glancing at the US banking sector, optimism certainly appears to be the order of the day but, almost inevitably, the UK isn’t quite as positive as the Americans, or even Europe. Don’t get us wrong, Europe isn’t exactly ecstatic but doesn’t feel like an unexploded bomb either.
Bitcoin, also lauded as a potential leap into the future should Mr Trump win the election, is unsurprisingly making headlines, managing above $80,000 on several sessions, creating a situation where we can suspect above $81,940 can next attempt a visit to somewhere just above $86k as a new high.
Should such a level be achieved, we’ve quite a strong reason to suspect some hesitation as our Big Picture secondary is absurd at $125k in the longer term. Even by bitcoin standards, this is a massive expectation, making us suspect the $86k level shall be used to define a new trend for the cryptocurrency.
As for NatWest, we’re a little alarmed at the speed of reversals from our 394p target. It is now the case where below 369p risks promoting reversals to an initial 351p with our secondary, if broken, a very probable rebound bottom down at 328p.
However, we are supposed to be drooling over the future potentials for the bank, and now it need only exceed 397p to encourage recovery to 452p next with our secondary, if beaten, at an amazing longer-term 540p.
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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