NatWest Group (NWG) share price has been trading sideways since last week. After a 20% drop in March 2023, NatWest Bank shares are recovering. The shares are already 12% up from the March lows and trading above the 200-day moving average. In the coming days, it can retest the 284p resistance.
Shares of most UK banks turned green during the first trading session of the week. At press time, NatWest Group share price UK is trading at 559p after gaining 1.67% during today’s trading session. HSBC, Lloyds, and Barclays are also showing positive price action.
UK Government To Keep Holding NatWest Group Shares
While the US and European Union are taking unprecedented steps to deal with the ongoing banking crisis, the UK government is still dealing with the aftermath of the 2008 financial crisis. At that time, NatWest Group was known as the Royal Bank of Scotland, which was bailed out by the UK government after acquiring a 42% stake.
Even to this day, the British government holds that stake in NatWest Group. Amidst the growing banking concerns, the government has announced to keep holding the stake for another two years. This is positive news for the Natwest Group share price as there won’t be any selling pressure from one of the largest shareholders.
NatWest Share Price Prepares For A Major Move
Technical analysis of the LON: NWG chart shows that the price is still in the midst of a recovery from the recent drop. Currently, the shares are trading above the 200 moving average on the daily chart, which is a sign of strength. There appears to be a strong demand around current levels as the buyers are absorbing the sell pressure.
In the coming days, a move up to the 284p resistance is quite likely, considering the ongoing consolidation. However, this NatWest share price forecast will be invalidated in case of a daily closure below 200-day MA.
