NatWest Continuation of the rebound

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By :  ,  Financial Analyst

NatWest: Continuation of the rebound

The banking group NatWest announced that it swung to a 3Q profit after tax of 148 million pounds from a loss after tax of 209 million pounds in the prior-year period, while net interest income dropped 4.0% on year to 1.93 billion pounds. Impairment losses narrowed to 254 million pounds from 2.06 billion pounds in the prior quarter. The bank said: "We believe the full year impairment charge is likely to be at the lower end of the £3.5-4.5 billion range following the limited level of defaults across lending portfolios and associated ECL stage migration within the third quarter."

From a chartist’s point of view, the stock price is posting a short term rebound. The 20/50DMAs have validated a bullish cross. The daily RSI (14) is holding above a former declining trend line and is not overbought. Readers may want to consider the potential for opening Long positions above the key support at 100p, with 128.05p and 141.4p as targets. Alternatively, a push below 100p would reinstate a bearish bias with 90.55p as first alternative target.

Source: GAIN Capital, TradingView

Related tags: Coronavirus UK Equities

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