Could NatWest shares be about to kick higher?
The high street lender has managed a strong recovery from the tariff crash, and independent analyst Alistair Strang has run his software again, looking for more good news.
28th April 2025 07:40
by Alistair Strang from Trends and Targets
It all kicks off this week for NatWest Group (LSE:NWG) due to their Q1 2025 results being issued on Friday 2 May. With Barclays (LSE:BARC) and Lloyds Banking Group (LSE:LLOY) spilling their beans in the preceding couple of days, we should have a pretty firm clue as to the direction NatWest shall take, but our inclination is now toward some optimism.
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In our last report three weeks ago, we’d given 455p as a fairly major target, an ambition which has been achieved with the share price spending the most recent seven sessions, closing slightly above our target. According to our in-house rules, this should permit a happy dance for all those involved!
The situation now is interesting, suggesting movement above 485p, the high of this year, should trigger a visit to 506p next with our longer-term secondary coming in at 548p. Such a price level should (according to our software) promote some hesitation, but it’s easy to disagree with such a conclusion, due to the visual impression from the chart, the share achieving trading levels not seen since 2007 when the financial crisis hit harder than Covid-19.
Without doubt, this would imply the share moving firmly into “Big Picture” territory, where we can now speculate at the chances of a future 781p forming a long-term attraction.
The really big deal comes at 548p as this shall finally indicate the financial sector is breaking from of the damage enacted by the financial sector crash of 2009. It will certainly be a newsworthy incident, providing absolute confirmation the NatWest share price has finally broken free from its bad habit of oscillating above and below the 300p level for the last 13 years.
It used to be said playing the stock market was a seven-year game but, from our perspective, the market overall is finally recovering from the tech market crash of 2003. If our sums are correct, the next time the FTSE 100 closes above 8,695 should herald a period where taking a long position, then waiting. shall provably prove a good idea.
As always, there’s the threat of converse movement as share price closure below 439p appears to have the potential of triggering reversal to an initial 368p with our secondary, if broken, at 330p and hopefully a bottom.
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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