The Natwest share price action continues to bask in the euphoria of the improvement in pretax H1 profits to 2.5 billion pounds and the return of dividend payments to investors.
Natwest Bank plans to pay 1 billion pounds a year to investors as dividends as the UK banking sector enjoys an improved outlook. This outlook could see Natwest share price hitting 220p in the third quarter.
Accelerated profits for several of the UK’s biggest banks have dissipated any fears of pandemic-related bad loans and have put shareholders back on the path of earning dividends. Natwest is paying out 3 pence per share to shareholders. It also plans to buy back 750 million pounds worth of shares as the UK government seeks to divest more of its holdings to below 50%.
The daily candle is now testing resistance at 210.0. If this level is broken, 214.5 becomes the new target. The 3 June 2019 high/18 November 2019 low at 220.0 serves as an additional upside target, while 228.3 (20 January 2020/10 February 2020 highs) remains in the reckoning if the uptrend move carries on.
On the flip side, a channel breakdown allows the bears to aim for the 200.6 support, with 195.0 and 187.3 (11 May/20 July low) lining up as potential downside targets if the breakdown move persists.
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