Despite recovering all of 2020’s pandemic losses, the Natwest share price shows no signs of slowing down in the immediate future. Strong technicals suggest the British banking giant may improve upon this year’s impressive 60% gain.
Natwest Group (LON: NWG) has performed well in the aftermath of the covid-19 pandemic, and as of yesterdays closing price, the part-government-owned bank is showing a 100% gain over the last 12 months. Not to mention, on Monday, Natwest reached 234p, the highest price since January 2020. Surprisingly, the impressive performance comes amid growing fragility in global equities, as China deals with the Evergrande debt crises and the United States faces a tapering Federal Reserve.
Natwest Price Forecast
Looking at the daily chart, we see that Natwest is trending higher in a rising wedge formation. The trend is constructive, and if the lower edge of the pattern at 215p holds, the share price should soon achieve 250p. The 50-day moving average at 217p, the 100 at 210p and the significant 200-day at 197p reinforce the bullish momentum. However, the Relative Strength Index registered 71 on Monday, indicating the share price was stretched and ripe for a correction. However, the gauge cooled to 63.66 yesterday, which has relieved the immediate pressure.
Referring to the old maxim ‘the trend is your friend’, as long as Natwest remains in trend, I maintain a bullish view, with a 250p price target. However, if the share price drops below the supportive trend line at 215p, it will invalidate this view.
Natwest Share Price Chart (Daily)
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