- Summary:
- NatWest share price has the potential of adding more than 20% in the near term when you look at the daily chart. What next for the stock?
NatWest share price is up for three consecutive days as traders remain optimistic about the UK housing market. The shares are trading at 164.25p, which is higher than last week’s low of 148p. Other UK banks like Barclays, Lloyds, and HSBC are also in the green.
Why are NatWest shares rising: There are three main reasons why NatWest and other banking shares are rising in London today. First, there is a rising chance that the UK and EU will ultimately reach a Brexit this year. This will be a good thing for the overall UK economy.
Second, the company has started to boost its mortgage lending business. In a statement on Monday, the bank said that it would start offering loans of up to 90% of the property value starting today.
This offer will be available to both first-time buyers and home movers. This will likely lead to more sales since most UK home buyers don’t have large deposits. The announcement came a week after Lloyds Bank made a similar move as UK houses rise at the fastest pace in six years.
Finally, NatWest share price is rising possibly because of the strong manufacturing and services PMI data. The data showed that the manufacturing and services PMI rose to 55.9 and 50.5, respectively.
NatWest Share Price technical outlook
What next for NWG share price: On the daily chart, we see that NatWest stock has been on a strong upward trend. It has risen by more than 80% from its year-to-date low of 90.05 and is now at 164p. In recent days however, it has struggled to move above 177p, which is the 50% Fibonacci retracement level.
Therefore, it seems like buyers have returned, which will possibly push the price to the 61.8% retracement level at 198p. That price is 20% above the current level.
NWG share price chart
