After a gap-up, Royal Bank of Scotland zoomed into extreme optimism and immediately met with bears that dragged the stock price down. Now the stock is reverting to its mean which makes it even more attractive to buy at a discount. A gap-filled will be a first step before bulls make their presence felt on the stock price.
- Let emotions and sentiments work for...
For a more in-depth analysis, see:
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.