Natwest Share Price Target of 240p Likely on Pattern Breakout

    Natwest Share Price Target of 240p Likely on Pattern Breakout
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    This Wednesday, NatWest’s share price remains in negative territory, despite attempts by the bulls to recover losses following a sharply negative opening.

    On Tuesday, NatWest Group priced $1 billion worth of senior callable fixed-to-fixed rate notes due in 2028. These notes carry a 5.516% yield, and the issuance will close tomorrow. The proceeds from this issuance, after deducting expenses and underwriting discounts, will be used to support NatWest Group’s general banking operations.

    NatWest’s share price reached its highest level in June after the British government announced it would limit the sale of its remaining shares in the bank to no more than 15% of the group’s total trading volume over the next 12 months. This decision effectively extends the government’s timeline for selling its remaining stake in NatWest until August 2023. The UK government had originally nationalized the bank during the 2008 global financial crisis to prevent its collapse.

    As of now, NatWest’s share price is down by 0.18%.

    The current price action is forming a symmetrical triangle pattern. With the price nearing the triangle’s apex, it is testing the resistance at 224.2p, which aligns with the highs from March 22, May 5, and June 27. A break above this level would allow the bulls to push for a breakout from the triangle, targeting the next resistance at 228.3p, corresponding to the highs from December 24, 2021, and April 21, 2022.

    If the price advances further, the next target would be 233.6p, aligning with the January 5 low and June 9 high. Finally, reaching the 240.4p resistance level, which corresponds to the February 24 low and February 18 high, would complete the measured move from the triangle pattern.

    On the downside, if the price fails to break the 224.2p resistance, the lower boundary of the triangle could be at risk. A breakdown below this level, along with the 220.0p psychological support (April 27 and May 4 lows), would open the door to the 214.5p support level. Further declines could target 210.0p and 206.6p, with the May 12, 2022 low at 200.6p being a potential target for the bears if the price continues to deteriorate.