Hope for Barclays shares after chart breakout
Trading in a 30p range for much of the past two years, this lender's shares have now broken above two trend lines. Independent analyst Alistair Strang explains the significance.
26th February 2024 09:13
by Alistair Strang from Trends and Targets
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As the chart below shows, Barclays (LSE:BARC)' share price was gapped up above the downtrend since January 2023, which makes things interesting.
It creates the situation where movement next above 167p should prove capable of provoking ongoing recovery to an initial 172.7p with secondary, if beaten, now at an interesting looking 194p.
This secondary is of special interest, perhaps even giving the share price an opportunity to close a session above the prior closing high of 189.5p and suggest happy days may be ahead for the share price.
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In addition, there is something just a bit questionable about the decision to “gap” Barclays up, when the organisation released positive financial results.
Not only was the share price gapped up above the downtrend since January 2023, it was also gapped above the downtrend which dates back to February 2007, a time when the share price almost reached 800p.
We’ve shown this as a Green trend line on the chart and, from our perspective, there’s a heck of a big question now making itself known.
Essentially, should we view the influences on the price as coming from a period where 189p was the ruling high or, if 800p shall bear any influence against future movements.
Hopefully, share price movements in the coming weeks contribute toward an answer as it will make a change to our calculation potentials.
Of course, this could prove an enormous practical joke by a market constantly keeping everyone “amused” by the way UK retail banks are treated.
The share price needs below 139p to ring alarm bells, giving the option of reversal to 12 initially with secondary, if broken, a probable bottom at 112p.
We suspect, this time, some hope should be possible for Barclays.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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