RBS.L ends the day indecisive

Royal Bank of Scotland PLC (RBS.L) Technical Analysis Report for Sep 14, 2018

Highlights

RBS.L breaks below 50-day moving average
RBS.L unable to break through key resistance level
RBS.L finds support at 20-day moving average
RBS.L finds buyers again around 245.00
RBS.L still stuck within tight trading range

TQ Sentiment

Report Sentiment: 30% Bullish
Technical Forecast:

Overview

RBS.L ended the week 0.45% higher at 246.10 after losing £1.30 (-0.53%) today on high volume. Closing within the prior day's range, prices failed to decisively move past the previous day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.

Daily chart for RBS.L

Volatility

Friday's trading range was £3.20 (1.3%), that's below last trading month's daily average range of £4.45. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being below average. Prices continued to consolidate within a tight trading range between 243.70 and 251.90 which it has been in now for the last trading week.

Support/Resistance

Prices are trading close to a key support level at 242.30. Unable to break through the key technical resistance level at 248.00, the market closed below it after spiking as high as 248.20 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. After having been unable to move lower than 245.80 in the prior session, the stock found buyers again around the same price level today at 245.00. After trading as low as 245.00 during the day, the share found support at the 20-day moving average at 245.57.

Trend

Though RBS is experiencing a short-term up trend, this might just be a correction, as both the medium and long term trends are still in negative territory. RBS.L broke below the 50-day moving average at 246.83 today for the first time since September 11th.

Order Flow

Buying could speed up should prices move above the close-by swing high at 250.70 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 243.70 where further sell stops might get activated. With prices trading close to this year's low at 238.40, downside momentum could speed up should the market break out to new lows for the year.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bearish.

Market Conditions for Royal Bank of Scotland PLC

Condition Forecast Direction Win Rate Exit Day Events
Strong Up Move TQ Pro Members Only
Close near high of period TQ Pro Members Only
Bullish Outside Bar TQ Pro Members Only
Closed above last periods high TQ Pro Members Only
Bullish Break through SMA 50 TQ Pro Members Only
More market conditions identified for TQ Pro members...
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