Natwest Group Surges 4.20% to Four-Week High on Bullish Technical Breakout

Natwest Group (NWG) rose 4.20% in the latest session to close at 14.14, its highest level since late June, accompanied by significantly above-average trading volume.
Candlestick Theory
The most recent candle formed a decisive bullish marubozu pattern with minimal upper wicking, closing near the daily high of 14.17 after gapping up from the previous session. This breakout candle overcame resistance at the 13.80-14.00 consolidation zone that contained price action since late June. Notably, it establishes 14.17-14.20 as immediate resistance, with strong support now visible at 13.55 (July 24th low) and 13.30 (the convergence point of June and July swing lows). The gap formed between Thursday's low (13.55) and Friday's opening warrants monitoring for potential closure.
Moving Average Theory
The 50-day moving average (13.82) remains above the 100-day SMA (13.35), which in turn holds above the 169-day SMA (12.10), confirming a bullish long-term structure. (Note: 169-day SMA used due to limited data points). Crucially, Friday's close extended the price premium over all three averages, while the ascending 50-day MA has provided dynamic support throughout July. The current configuration shows accelerating momentum as the short-term average slopes upward at a steeper angle than mid-term averages.
MACD & KDJ Indicators
The MACD histogram has turned positive this week following a bullish crossover above its signal line, indicating strengthening momentum after trending near the zero line in July. Concurrently, the KDJ oscillator has risen sharply from oversold levels (K=25 on July 22) to current readings of K:78/D:72/J:90. While approaching overbought territory, the synchronized ascent across all three lines without bearish divergences suggests room for further upside. This alignment confirms the MACD's bullish signal.
Bollinger Bands
Price has pierced the upper Bollinger Band (13.97) for the first time since mid-June as bands expanded significantly from their late-July contraction. This volatility breakout from the tightest bandwidth reading in six weeks signals continuation potential. Historically, such expansions after prolonged compressions have preceded directional moves in NWG. The middle band (20-day SMA at 13.58) now serves as primary support.
Volume-Price Relationship
Friday's 5.3 million shares traded marked a 30% volume increase over the 30-day average, validating the breakout on accumulation. This volume surge coincides with the highest closing price in four weeks, demonstrating conviction. The volume profile since early July shows decreasing activity during the 13.30-13.80 consolidation, with decisive expansion on upside resolution – a classically bullish structure.
Relative Strength Index (RSI)
The 14-day RSI (63) has risen from neutral levels (42 last week) but remains below overbought thresholds. Importantly, the RSI made higher lows in late July while prices tested support at 13.30, establishing positive divergence before the current advance. This momentum reset during consolidation provides runway for further gains before reaching overbought (>70) cautionary territory.
Fibonacci Retracement
Using the June 3rd peak (14.49) and July 2nd trough (13.01) as anchor points, key Fibonacci levels are established: 14.06 (23.6%), 13.75 (38.2%), and 13.25 (61.8%). Friday's breakout above the 23.6% retracement (14.06) now targets the 50% retracement at 14.25. Confluence exists here as this level aligns with the psychological 14.20 resistance and the mid-June reaction high.
Confluence is observed between the Bollinger Band breakout, MACD bullish crossover, and volume-backed price clearance of Fibonacci resistance at 14.06. Divergences are currently absent across indicators. The technical framework suggests bullish continuation potential toward the 14.20-14.25 resistance cluster, though overbought KDJ readings warrant monitoring for near-term consolidation after the sharp ascent. Should the breakout hold, the next significant resistance emerges at the yearly high (14.49).