Can RBS shares break out to 300p and a two-year high?

The Royal Bank of Scotland (LSE:RBS)

It’s time for our monthly moan about RBS (RBS), the bank that likes to say “doh”.

Oddly though, for four days earlier this month, the company share price actually managed to close a session above the trend since 2008 – currently 279.25p. Usually this is something giving some hope, suggesting a downtrend which can be bettered.

Or perhaps we’ve drawn the wrong line?

This is actually doubtful, given the level of fascination the share illustrates against this blue line. It does tell us, rather than hoping for a trend break, the only signal we now dare trust shall be this banks share price illustrating “higher highs”.

If we were asked to pick a “safe trading scenario”, it appears closure now above just 286p should produce circumstances where growth to a near term 302p makes a lot of sense. Equally sensible, though unlikely if we say it aloud, is the secondary which calculates as a longer term 353p.

To be fair, the price has already ticked many of the boxes allowing for 353p making a guest appearance in the future and our only worry has been the respect shown by the market to this downtrend. It’s almost as if “they” do not wish this price to go up just yet.

If this reticence against growth is indeed correct, the immediate red uptrend since 2016 is currently lurking at 256p and presents a real risk of the share remaining trapped for a while. Below red would certainly justify some alarm, along with a trip down to 244p. Visually, this would stink and tend confirm the market does not wish RBS share price to head into the santa zone, onward and upward.

Alistair Strang has led high-profile and “top secret” software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know “how it worked” with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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