By 
NatWest’s share price has been consolidating as investors closely monitor the state of the UK economy. Currently, the stock is trading at 226.4p, which is about 28% higher than its lowest level this year but still 10% below its year-to-date high. With a market cap exceeding £23 billion, NatWest remains one of the largest banks in the UK.
Previously known as Royal Bank of Scotland (RBS), NatWest has a troubled history, nearly collapsing during the 2008-2009 financial crisis. The UK government had to step in with a massive bailout, injecting billions of pounds to save the bank.
In recent years, the Conservative government has gradually sold off its stake in NatWest, reducing its ownership by selling 703.5 million shares, which has generated over £1.6 billion. On Wednesday, the government announced that it will extend this divestment process by another 12 months, aiming to return the bank to full private ownership by 2025-2026. Currently, the government holds about 48.5% of NatWest, a stake valued at over £11 billion.
A key concern for NatWest’s share price is the slowing UK economy amid rising inflation. Data released on Wednesday revealed that consumer inflation surged to 9.1% in May, while core inflation dropped slightly to 5.9%. Additionally, producer price inflation for inputs and outputs jumped to 22.1% and 15.7%, respectively. These inflationary pressures are expected to slow consumer spending and mortgage growth significantly.
The daily chart indicates that NatWest’s stock has been trading within a narrow range over the past few weeks. The stock has moved above both the 25-day and 50-day moving averages and has formed an ascending triangle pattern. The MACD indicator has also moved above the neutral level.
Given these technical signals, NatWest’s share price is likely to continue rising, with bulls potentially targeting the key resistance level at 250p. However, if the stock drops below 210p, this bullish outlook would be invalidated.