Confluence of resistance for RBS

LSE:RBS   None
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.

The market has retested and responded to the 0.382 trendline from the fan 3 times before now. That makes it a validated trendline and solid resistance in its own right. When this was combined with the 100-day moving average, it gained even more significance. Now, the Fibonacci extension is measured not from a price range, but from a non-price range: a gap! The high of the top candle landed right on the 2.618 extension. This degree of confluence means something.

That being said, the market had completed 5 waves down and developed a bullish divergence on the RSI . If this means the downtrend is over, then today's turn to the downside may be short lived, even it it was initiated by a very strong area of resistance. A very interesting chart to keep an eye on.