Royal Bank of Scotland is close to an area that might stop the short term upward trend.

The fundamentals remain very fragile. Analysts have revised downward earnings per share estimates. The growth prospects of the group were lowered. The security seems highly overvalued compared to other securities in its sector.

From a technical viewpoint, the proximity of the bearish trend line limits the upside potential on the stock. The uptrend in the short term could be stopped by this level and prices could decrease sharply in the coming sessions in direction of the 20 and 50-week moving average level.

Therefore, the most offensive investor can benefit from the technical configuration to take a short position. The objective will be fixed near to the GBp 306 pivot point area. Only the breakdown of this level would open up new bearish targets toward the GBp 266 support. The stop loss will be set above the GBp 355 short term resistance.