RBS - Set to correct lower?

LSE:RBS   None
Sell RBS ( RBS .L)

The Royal Bank of Scotland Group plc ( RBS ) is a banking and financial services company. The Company provides a range of products and services to personal, commercial, corporate and institutional customers, through its subsidiaries, The Royal Bank of Scotland plc and National Westminster Bank Plc (NatWest), as well as through other brands, including Ulster Bank and Coutts.

Market Cap: £29.13Billion

RBS appears overdone in the very short term. The shares have benefitted significantly form the rally in GBP over recent weeks with a 30%+ rally from the October lows. The shares have rallied into an unfilled gap at 247.4p, which was created on the 26th April 2019. This also corresponds with a 78.6% Fibonacci retracement level from the highs at 266.1p on the 17th April to the lows at 176.6p on 15th August 2019. The looks to be a reasonable level to take some short-term profit or initiate some speculative selling. The bearish looking candle on the daily chart adds further weight to the bearish argument.

Stop: 250.5p
Target 1: 232p
Target 2: 217p
Target 2: 197p

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