Traders officially love to sell RBS.L against 295.00 level
Royal Bank of Scotland PLC (RBS.L) Technical Analysis Report for May 17, 2018 | by Techniquant Editorial Team
RBS.L finished Thursday at 294.50 gaining £3.00 (1.03%). Today's closing price of 294.50 marks the highest close since January 29th. Trading up to £1.40 lower after the open, RBS managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (RBS.L as at May 17, 2018):
Thursday's trading range was £3.50 (1.19%), that's slightly below last trading month's daily average range of £4.56. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being above average. Prices continued to consolidate within a tight trading range between 288.00 and 295.50 which it has been in now for the last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key resistance level at 295.50. The share was sold again around 295.00 after having seen highs at 295.40, 295.10 and 294.90 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 295.40 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 290.00 where further sell stops could get triggered. With prices trading close to this year's high at 304.20, upside momentum might accelerate should the stock be able to break out to new highs for the year.