Spread Betting Magazine - v10

Page 60

Editorial Contributor

Royal Bank of Scotland The banking sector’s most risky play is surely RBS. Already largely in state hands, the bank could easily end up being fully nationalised, wiping out shareholders entirely. It has been beset by problems of late including IT glitches and the botched sale of branches. It could be argued that RBS has traced out a significant bottoming pattern just below the 200p level. That is not my reading of the chart, however. A more likely outcome is that the share price ends up returning to and possibly through the 171p level. I would be especially interested in short-selling a reversal between 290p and 300p accompanied by a daily relative strength index reading above 70%.

RBOS Chart

60 | www.financial-spread-betting.com | November 2012


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