NatWest Group (LON: NWG) share price has been in a tailspin for the past few weeks, along with the shares of other UK banks. Since the start of this month, bank shares have taken the hardest hit as global banking concerns keep deepening.
The bank failures in the US are the major concern for the holders of Natwest shares. The contagion appears to be spreading to Europe as well as the Credit Suisse came to the verge of a collapse. Even though the swiss lender was saved by the recent government-brokered takeover by UBS Group, its effects on the global banking system may last for months.
To facilitate the processes of e-document signing and digital onboarding, NatWest Group has recently partnered with identity service provider OneID. The partnership will roll out an embedded digital ID solution for customers via NatWest Group’s Bank of APIs. The latest identity solution will also let the users verify their age while procuring restricted services like hiring a car etc.
NatWest Group share price tagged fresh YTD lows last week as the shares tagged 237.2p. After a brief recovery above the 200-day moving average, the shares are having another sell-off. On Tuesday, shares of Natwest Bank’s parent company opened slightly higher but failed to gain any momentum. Till press time, LON: NWG was trading at 260p after showing minor gains.
On the daily chart, NatWest shares are retesting the 200 moving average. This is a key indicator that often acts as a line in the sand for many traders. Currently, the price is trading just a fraction below this critical indicator. A daily closure below this level can tank the shares to their March low of 237.2p once again.
A break below last week’s low will make NatWest Group price forecast very bearish. In such a scenario, shares of the British banking giant may drop below 200p to retest their March 2022 lows of 196.9p.
This post was last modified on Mar 28, 2023, 12:03 BST 12:03