The Natwest share price has remained in a consolidation phase as investors react to the ongoing weakening of the UK economy. The NWG stock price is trading at 221p, which is a few points below the year-to-date high of 247p. However, this price is about 25% above the lowest level in March this year. It has also outperformed other UK banks like Lloyds Bank and Barclays.
Natwest is a giant UK bank that was formerly known as Royal Bank of Scotland. It is a large bank that has a market cap of over $28 billion. The UK government is one of the biggest shareholders in the company. This happened after the government gave it over 45 billion pounds and took a 62% stake in the firm. It is now lowering its stake in NatWest by selling shares in the open market. In a recent statement, the government said that it will completely exit its stake in 2025 or 2025.
The Natwest share price is in a consolidation phase in the past few days as investors worry about the state of the UK economy. Recent data paints a picture of a country that is in a recession. Business and consumer confidence have dropped sharply as inflation remains at the highest point in more than three decades.
The positive of all this is that NatWest will offset weak consumer and business spending by higher interest rates by the Bank of England. In its bid to deal with high inflation, the BOE has hiked rates in the past five meetings. These hikes will boost the company’s interest income since the company has over 1.5 trillion worth of assets.
Natwest share price forecast
In my previous NWG share price forecast, I pointed to the fact that the stock has been in a consolidation phase in the past few days. This consolidation has continued in the past few days. It has also formed what looks like an ascending triangle pattern. The stock is also along the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) has moved to the neutral point.
Therefore, the Natwest stock price will likely have a bullish breakout because of the ascending triangle pattern in the coming weeks. However, a drop below the support at 200p will invalidate the bullish view.