NatWest Group (LON: NWG) share price is giving a lot of bearish signals ahead of its earnings release. The British banking giant is set to release its financial results for Q2 2023 on Friday. The technical analysis predicts more downside for the stock.
The FTSE 100 index gained 12 points on Thursday as the energy stocks extended their gains. However, the rest of the market gave mixed signals as the bank shares tumbled. NatWest shares were also down 0.99% till press time.
The negative price action by the shares of NatWest Group can be attributed to the Farage ‘debunking’ scandal. The bank’s Chief Executive Alison Rose has stepped down this week after admitting her role in the whole controversy. The group’s chairman Sir Howard Davies is also under pressure to resign.
NatWest share price is experiencing high volatility ahead of tomorrow’s release of its H1 financial results. If the results fail to satisfy the investors, the sell-off may get intensified. Another reason behind the bearish sentiment on bank shares is the recently released financial results from Barclays. In its latest results, the bank revealed a significant decrease in revenue while also downgrading its margin outlook.
The upcoming earnings will be a key event affecting LON: NWG price action. The technical analysis reveals that the shares have confirmed the breakdown from the upward trendline. The first downside target for the bears seems to be the June low of 226p.
Considering the high timeframe analysis of the chart, NatWest Group share price forecast is not looking very bullish. If the bank earnings keep disappointing the investors, a move below 200p is a real possibility in the coming months.
In the meantime, I’ll keep you updated on tomorrow’s NatWest earnings on my Twitter, where you are welcome to follow me.
This post was last modified on Jul 27, 2023, 12:34 BST 12:34