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NatWest Group (LON: NWG) share price is showing several bearish signals ahead of its upcoming earnings release. The British banking giant is set to announce its financial results for Q2 2023 on Friday, and technical analysis suggests the stock could face further declines.
On Thursday, the FTSE 100 index gained 12 points, driven by strength in energy stocks. However, the broader market sent mixed signals, with bank shares notably under pressure. NatWest shares were down 0.99% at the time of writing.
The negative movement in NatWest’s share price is partly due to the fallout from the Farage ‘debunking’ scandal. The bank’s Chief Executive, Alison Rose, resigned this week after admitting her involvement in the controversy. Additionally, the group’s chairman, Sir Howard Davies, is also facing calls to step down.
NatWest shares have been highly volatile ahead of the H1 financial results set to be released tomorrow. If these results disappoint investors, the ongoing sell-off could accelerate. Another factor contributing to the bearish sentiment around bank stocks is Barclays’ recent financial results, which showed a significant drop in revenue and a downgraded margin outlook.
The upcoming earnings report will be a crucial event for NatWest’s share price. Technical analysis indicates that the stock has confirmed a breakdown from its upward trendline, with the first downside target for bears appearing to be the June low of 226p.
Looking at the chart over a longer timeframe, the outlook for NatWest Group’s share price is not very optimistic. If the bank’s earnings continue to fall short of investor expectations, a decline below 200p could be a real possibility in the coming months.
I’ll keep you updated on NatWest’s earnings tomorrow on my Twitter, where you’re welcome to follow for the latest news.