By 
NatWest’s share price has made a strong recovery from its 2020 pandemic losses and shows no signs of slowing down anytime soon. The British banking giant has seen a remarkable 60% gain this year, and strong technical indicators suggest further upside potential.
As of yesterday’s closing price, NatWest Group (LON: NWG) has doubled its value over the past 12 months, reflecting a 100% gain. On Monday, the share price reached 234p, its highest level since January 2020. This impressive performance is particularly noteworthy given the current global market uncertainties, including China’s Evergrande debt crisis and the U.S. Federal Reserve’s tapering concerns.
Analyzing the daily chart, NatWest’s share price is trending higher within a rising wedge pattern. If the lower boundary of this pattern at 215p holds, the stock could soon reach 250p. The bullish momentum is further supported by the 50-day moving average at 217p, the 100-day at 210p, and the crucial 200-day moving average at 197p. However, on Monday, the Relative Strength Index (RSI) hit 71, signaling that the share price was overbought and due for a correction. By yesterday, the RSI had cooled to 63.66, easing the immediate pressure.
In line with the saying “the trend is your friend,” I remain bullish on NatWest as long as it stays within the rising trend. My target is 250p. However, if the share price falls below the supportive trend line at 215p, this outlook would be invalidated.