Natwest Group Plc’s share price is recovering from the decline initiated after suffering rejection from the 200-day EMA. The price currently sustains near the 50-day EMA and heads upwards forming higher highs and higher lows.
The daily chart witnesses the formation of an inclining parallel channel pattern with the NWG price rolling in between the upper and lower boundaries of the channel. The bulls are gaining in the short term and trying to turn the trend in their favor.
The price trend analysis shows that the NWG stock has been in a long-term bearish trend which initiates once the price hits 200-day EMA. Currently, the price sustains near the 50-day EMA and shows bullish domination indicating that the price has an upside potential till the 200-day EMA from where bears may take over.
Also, the breakdown below the channel pattern may trigger another selloff and the price may slide to the lower support zones. However, if the price stays and surges near the 200-day EMA then it might turn the long-term trend in the favor of buyers and the price may surge higher forming higher lows.
NWG Stock Price Forecast For 2023
The average analyst price target for Natwest Group in 2023 is £3.37, which represents a potential upside of 39.58% from the current price. However, there is a wide range of analyst price targets, from £2.60 to £4.90.
The most optimistic analysts believe that NWG stock could reach £4.90 in 2023 if the UK economy recovers strongly and Natwest Group is able to successfully execute its growth plans. The most pessimistic analysts believe that NWG’s share price could fall to £2.60 in 2023 if the UK economy enters a recession or NWG is unable to compete effectively with fintech companies.
NWG Stock Price Tries To Sustain Above 50-day EMA
The daily price chart shows that the NWG stock price trades near the 50-day EMA indicating optimism in the short term. The stock price must surpass the 200-day EMA in order to turn optimistic in the long run.
The overall technical opinion rating including RSI and MACD signals a 56% “sell” rating with an average short-term outlook on maintaining the current direction.
Conclusion
NatWest Group’s share price is recovering from a long-term bearish trend. The price is currently above the 50-day EMA and forming higher highs and higher lows. Analysts are generally bullish on NatWest Group in the long term, with an average price target of £3.37 in 2023. However, the price may face resistance at the 200-day EMA and could fall to £2.60 if the UK economy enters a recession or NatWest Group is unable to compete effectively with fintech companies.
Technical Levels
- Support levels: £2.32 and £2.21.
- Resistance levels: £2.42 and £2.50.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/30/nwg-share-price-forecast-can-nwg-price-turn-bullish-in-october/