Chart of the Day: RBS

At the time of the Global Financial Crisis all those years ago, my view was that RBS should be allowed to go to the wall. That is still my opinion. Indeed, to paraphrase the outgoing Prime Minister’s comments with regard to Jeremy Corbyn, “for Heaven’s sake” will someone close the bank down?

RBS (RBS): Bear Flag Threatens Sub 150p Target

It has not exactly been an easy time for shareholders of the UK High Street banks, with the threat of Brexit becoming a reality, a reduction in our Credit Rating, and the risk that billions in (tax paid, legitimately earned) cash streaming in from all over the world looking for a safe home in Great Britain will be diverted elsewhere. The problem for RBS, which is currently losing around £30m a day and paying its CEO over £3m a year, is that even before Brexit the situation was dire, but now we struggle to come up with the right adjective. This state of affairs is reflected well on the daily chart, where it can be seen how this month delivered a massive gap to the downside. There was also a break of the former 204p 2016 floor. The risk now is that while there is no end of day close back above the 184p resistance of mid week, we will suffer a fresh leg to the downside. This could take the stock as low as a line of support from August last year heading as low as 150p over the next 2-4 weeks.