RBS knee jerk reversion trade

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cablemonster

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Hi

The news surfaced that Hester was leaving yesterday afternoon. This morning we saw a big knee jerk reaction but is the value of RBS fundamentally changed because of the departure? I reckon price will go right back to its pre announcement level.
 

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SamIP

Junior member
10 0
I agree, although the departure is definitely more evidence of a change in sentiment at RBS. Instead of the priority being around increasing profitability, it looks like RBS is strongly on course to a quick(er) and discounted privatisation. I've been staying away from RBS with a barge pole, although my question has always been around how will the re-privitisation affect the stock price?
 
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cablemonster

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Hi mate. Good analysis. It last traded 316 and I would exit at 325 in the couple of days if I had a position on. I day trade FTSE, DOW, euro, pound and eurgbp cross at present. I am very interested though in stocks where knee jerk reactions occur to specific event.
 
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cablemonster

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Was he not "forced" out?

dunno mate. I just saw the knee jerk sell off after the sky news and looked for technical signatures that the move was over. 300 was obviously a big line in the sand.
 
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cablemonster

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Well looks like price has recovered pretty much to pre-knee jerk levels. I was targeting 325 here but we have only made 324 to date. With FOMC around the corner if I had a position on I would certainly be looking to to close now or move a protective stop just under 320.
 

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