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NatWest’s share price has managed to rise by 0.71% despite the negative news surrounding its guilty plea for market manipulation. However, the FTSE-listed stock seems to have hit a temporary ceiling around the highs seen on December 16.
This increase in share price comes after NatWest Group’s investment banking division admitted to wire fraud and securities fraud related to historical spoofing activities in the US Treasury markets. These illegal activities, carried out by some employees in London, Singapore, and Connecticut, involved placing and then canceling orders on US Treasury contracts to mislead other market participants about actual demand and supply. The fraudulent actions took place over a decade, from 2008 to 2018.
As a result of these actions, NatWest has been fined $35 million in criminal penalties and restitution. The bank has stated that it identified the individuals involved and has since dismissed them following an internal investigation.
On the trading front, the intraday increase in NatWest’s share price has pushed it above the upper edge of a descending channel. This upward movement positions the stock close to testing the resistance level at 228.3. If the price breaks above this level, the next potential target could be the 233.6 resistance.
Conversely, if the share price declines from its current level or is rejected at the 228.3 resistance, it could allow bearish momentum to push the price down toward the 220.0 support level, with 224.2 serving as a possible interim stop. A significant selloff would be needed to drive the price below 220.0, which could then target further downside levels at 214.5 and 210.0. The 206.6 level remains a pivot that currently seems out of reach for the bears.