Natwest Group PLC: Will NWG Stock Derail Downtrend And Test 260?

• Natwest Group announced its Q2-2023 financial report.
• The NWG stock price closed the previous session at £231.0 with an intraday gain of 2.44%.
• The year-to-date return of NWG stock price is -15.30% and the three-month return is -15.62%.

The NWG Stock has been sliding down while forming lower lows. Hence, it is experiencing a downtrend trajectory in the market. The stock price slid roughly by 5% this month and is trading near the 52-week low.

The NWG stock price achieved an annual low at £221.8 support level on 22 August 2023. It indicates the ongoing bearish dominance in the price action. 

Natwest group stock has formed a double-top bearish candlestick pattern between the April and May months. The double top has witnessed near the £275 level with the neckline support of the £250 mark. That offers a further decline. 

Q2-2023 Report of Natwest Group.

Natwest Group recently announced its second-quarter earnings and revenue report on 28 July 2023. The Q2-2023 report is bossted with a surprise of nearly 1.17% and 3.84% in the EPS and revenue, respectively.

Thus, the reported £0.117 EPS has surpassed the estimated EPS forecast of £0.110. It boosted the confidence among the investors. 

Moreover, the reported revenue also reflected the same faith by £3.85 Billion. It is exceeding the estimated revenue forecast of £3.71 Billion.   

The market scenario reflects a dominance of sellers in the market. This trend may sustain much longer. The price might melt towards the £210 mark if that happens. 

On the contrary, If bulls snatch control from bears, the price would gain strength. The NWG stock price might surge and reach the significant level of the £260 mark. 

Will NWG Stock Retest £260 Mark?

The NWG Stock price is now trading below the 20, 50, 100, and 200-day EMA. It indicates a downtrend sentiment in the market and the price may fall further.

The RSI (relative strength index) has been down from 50 since 26 July 2023. The RSI was at 46.92 during the intraday trading session. It reflects that the price is in an oversold zone, and a temporary aid rally is possible.

The CMF (Chaikin Money Flow) score is -0.26 during the intraday. It denotes sellers’ dominance in the market. However, the market capitalization of Natwest Group is £20.09 Billion, with an average volume of 10.71 Million shares.

Conclusion 

The NWG Stock is in a bearish grip while experiencing downtrend momentum since early 2023. The Stock price has formed bearish patterns several times throughout the year. Therefore, short-term buyers should avoid long-term investment because there is a slight fear of further sell-off.

Technical Levels

Major support: £221.8 and £225.7

Major resistance: £313.1 and £296.1