Sell RBS (RBS.L)
The Royal Bank of Scotland Group plc (RBS) is a banking and financial services company. The Company provides a range of products and services to personal, commercial, corporate and institutional customers, through its subsidiaries, The Royal Bank of Scotland plc and National Westminster Bank Plc (NatWest), as well as through other brands,...
Buy Reckitt Benckiser (RB.L)
Reckitt Benckiser Group plc is a manufacturer and marketer of health, hygiene, post-natal and home products. The Company's segments include ENA and DvM. The ENA segment consists of Europe, Russia/Commonwealth of Independent States (CIS), Israel, North America, Australia and New Zealand. The DvM segment consists of North Africa, Middle...
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RBS ran into an almighty price barrier on Friday. Today it reversed over 2%. Look at the significance of this resistance. 3 components are shown in the chart:
1) Fibonacci fan line
2) 100-day moving average
3) 2.618 extension of a price gap.
UK banks outperformed the benchmark for UK shares during the rout in global stock markets that began in October. UK bank share prices are down over the past two months, but by less than the FTSE 100 index.
Positive expectations for stress test results have played a role in limiting the damage to UK bank shares.
Royal Bank of Scotland has broken its over a month long bearish trend, while bounced from it one year long bullish trend. RSI goes up over 50 and MACD also point to green area, where signal line was finaly croosed.
This setup looks like nice opportunity to go long.
Daily chart pattern – Bearish breakout from rising wedge
Failure to hold above 50-DMA if followed by bearish break from rising wedge on day end closing basis coupled with daily RSI breaching rising trend line and falling money flow index would signal a sell-off to 173.80 (Aug 5 low).
On the higher side, only day end close above 50-DMA would signal bearish...
Daily chart pattern – Rising trend line is being put to test
Daily RSI breaching the rising trend line
Daily money flow index diverged from price chart
Overall, prices appear on track to breach rising trend line support on day end closing basis.
Such a move would add credence to failure to sustain above 38.2%...