Technical Analysis Snap: RBS returns to profit but shares slide

7th Aug 2009 09:17

This morning's losses announced by RBS have pricked the banking bubble of the past few days and seen the shares slide.A small pre-tax profit of £15m, excluding the write-down of goodwill and intangibles, has seen the shares fall back from Thursday's highs, but the share price was always going to find it difficult to get much above 55p in any case.From a charting standpoint there is significant resistance around the mid 50p levels, as they are also near to the highs for 2009 of 57.20p, as shown in the above graphic. Furthermore any rally near to 65p will also find progress diminish as this is the level at where the first tranche of government intervention took place.Since the January lows of 10p the share price has slowly made gains, previously hitting the 50p mark at the beginning of May. There is significant support around 35p, which are the June and July lows, and as long as the share price is able to hold above these levels, then the prognosis should remain fairly positive.For periodic TA updates follow me on TwitterAlso read my Investors Guide to Technical Analysis and Level 2