RBS.L breaks below 20-day moving average
Royal Bank of Scotland PLC (RBS.L) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RBS.L ended the week -3.84% lower at 247.90 after losing £4.20 (-1.67%) today. Today's closing price of 247.90 marks the lowest close since July 26th. Closing below Thursday's low at 251.50, the share confirms its breakout through the previous session's low having traded £5.90 below it intraday.
Daily Candlestick Chart (RBS.L as at Aug 10, 2018):
Friday's trading range was £7.20 (2.85%), that's far above last trading month's daily average range of £4.53. Weekly volatility is also higher, being above the markets average with the monthly volatility being slightly above average.
After trading as low as 245.60 during the day, the market bounced off the key support level at 246.90. The failure to close below the support might increase that levels importance as support going forward. Breaking below the key support level at 251.80 today, it is now likely to act as resistance going forward. After having been unable to move above 253.30 in the prior session, RBS ran into sellers again around the same price level today, failing to move higher than 252.80.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term. The stock broke below the 20-day moving average at 249.11 today for the first time since July 25th.
With prices trading close to this year's low at 240.00, downside momentum could speed up should RBS.L break out to new lows for the year.