It seems amazing to think that with 63 million people making up the UK population, that no-one was suitable to take on the job of Governor of the Bank of England. Indeed, the other job that no one in their right mind wanted to take on was assigned to someone not local to these shores – Ross McEwan – chief executive of RBS (RBS).
McEwan – a “Kiwi”- accepted the poisoned chalice of being CEO of a “banking basket case” by not pushing for a seven-figure bonus like any normal person would have done. If Oscar Wilde were alive today, I am sure he would have said something along the lines of: “The only thing worse than a banker who does not insist on a massive non- performance related bonus is one who does not.”
But all this “pales into insignificance”, if compared to the issue with the UK government’s Business Secretary Vince Cable. How this man managed to get into the “A-List” of politics will forever be a source of mystery. The latest from Mr Cable, is that the sale of RBS (RBS) could be five years away, a time-frame which is currently around five years longer than David Cameron and his “Old Etonian inner circle” would like.
But even after what has appeared to be a string of deliberately unhelpful comments, such as the RBS one today, it is a miracle that the Business Secretary remains in his job. Presumably, on the basis that the Coalition is short-staffed! The simplest solution would appear to be to abolish this post, given that it appears to be about as useful to the government as the then GLC leader Ken Livingstone was to Mrs Thatcher in the 1980s.
As far as the charting position of RBS (RBS) is concerned it would appear that after a wobble associated with the appointment of the “Kiwi” CEO, we are seeing fresh strength in the price action.
What bulls of the stock should be understandably excited about, is the way that so far in 2013 we have been treated to a W-shaped reversal formation, one whose right-side rebound is currently playing out at and above the 200-day moving average at £3.12.
This along with a rising trend channel based at £3.20 from the beginning of last month, and a RSI reading at 57-well above the neutral 50 level, all goes to suggest significant near-term strength for the shares.
Indeed, while there is no end of day close back below the 200-day line one would expect a target as high as £3.70 soon as the end of next month, as the shares head for a July resistance line projection.