LAST week, Royal Bank of Scotland (RBS) released positive earnings, which followed upbeat performances from HSBC, Barclays and Lloyds Banking Group, indicating a recovery of the UK banking sector. An inverse head and shoulders bullish pattern is noted on daily charts of RBS and an important level of 49.7p has been broken, signalling further gains. The stock could now move to 58p, the April high. On the downside, support lies at 47p where good demand could emerge. Spread Co quotes RBS as 51.46p-51.49p.
Across the Atlantic, the shine was taken off financial indices on Friday, after disappointing unemployment data from the US raised concerns that the jobs market in the world's biggest economy was under serious stress. This precipitated a tumble in the Dow Jones Industrial Average. Further weakness could follow. Capital Spreads offers a price of 10582-10584 for the Dow Jones index.
Friday’s US non-farm payrolls figures also led risky assets lower last week. Crude oil fell by more than a dollar, after hitting three-month highs and breaking $82 a barrel the week before. With investors turning their attentions to safe havens such as gold, further drops in oil could be on the cards. ShortsandLongs.com has a light crude daily September price of $80.94-$80.99.