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Home / Trade Alert / Buy – Royal Bank of Scotland (RBS)

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Buy – Royal Bank of Scotland (RBS) - 26 November 2015

Opening Price Stop Loss Profit Limit Reward vs Risk CFD Margin
304p 290p (14p/4.6% below) 335p (31p/10.2% above) 2.2x 5%

Observations – For

  • Shares bounced off 18-month lows 295p
  • Stochastics oversold and found support
  • Momentum rising lows
  • RSI down at 6-month low

Observations – Against

  • Downtrend since February
  • No Point & Figure chart reversal
  • No bullish cross by Directional Indicator
  • Most technical indicators still negative

Analyst Comments

Peer Lloyds has already started paying dividends again; any news on this from RBS could generate interest in the shares. Same thing with any further selling down of government bailout stakes. Positive news on UK economy would likely provide  a benefit. Poor share price performance could lead to a late year rally/bounce from long-term support.

With 88% of brokers are Positive/Neutral on the stock, while 83% of target prices are above current levels. The consensus target suggests 17% upside.

Next Event:  FY Results, 26 Feb

Latest Broker 12-Month Consensus:  31% Buy, 58% Hold, 12% Sell (full breakdown on request)

Source: DowJones Newswires, Reuters News, Bloomberg  or Company Press releases

Broker Ratings & 12-Month Target Prices (Bloomberg)

24-months (daily) – MACD, Stochastics, Directional Indicators, RSI, Momentum

Share 1wk 1m 3m 1yr 2yr 3yr 4yr 5yr
Perf % -4.8 -8.9 -15.4 -22.4 -9.4 2.2 60.4 -26.5
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