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NatWest’s share price has been on the rise for three consecutive days as optimism grows around the UK housing market. Currently trading at 164.25p, the stock has rebounded from last week’s low of 148p. Other UK banks like Barclays, Lloyds, and HSBC are also seeing gains.
There are three key reasons for the upward movement in NatWest shares. First, there is increasing optimism that the UK and EU may finally reach a Brexit deal this year, which would positively impact the broader UK economy.
Second, NatWest has recently announced an expansion in its mortgage lending business. As of Monday, the bank will offer loans covering up to 90% of a property’s value, available to both first-time buyers and those moving homes. This move is expected to boost home sales, especially since many UK buyers struggle with large deposits. This announcement follows a similar move by Lloyds Bank, as UK housing prices continue to rise at their fastest pace in six years.
Lastly, the strong performance in the UK manufacturing and services sectors, reflected in the latest PMI data—55.9 for manufacturing and 50.5 for services—has also contributed to the positive sentiment around NatWest’s share price.
Looking ahead, the daily chart shows that NatWest’s stock has been on a significant upward trend, climbing over 80% from its year-to-date low of 90.05p to its current level of 164p. Recently, the stock has faced resistance around 177p, the 50% Fibonacci retracement level. However, with renewed buying interest, the price could potentially reach the 61.8% retracement level at 198p, which is about 20% above the current price.