Are Barclays shares now primed for real growth?
The bank’s share price is flirting with its trigger level, and the party could be about to start.
1st June 2021 08:41
by Alistair Strang from Trends and Targets
Share on
The bank’s share price is flirting with its trigger level, and the party could be about to start.
Barclays Plc
When we reviewed Barclays (LSE:BARC) three weeks ago, we were breathlessly enthusiastic as to the share price prospects if it would only exceed 191p.
Presently trading around 183p, a visit to our trigger level was studiously avoided. The trigger level for movement has melted downward, now standing at 188p.
Our software claims movements above 188p should now provoke price recovery to an initial 201p with secondary, if exceeded, calculating at 210p.
A glance at the chart below reveals both ambitions take the share price solidly into a region where an iota above 210p can expect longer-term price recovery toward 290p eventually.
We can all hope something will get the party started. Our own preference shall be the market opting to ‘gap’ the share price upward at the open anytime soon, ideally by around 10p above current levels. This will certainly broadcast a strong suggestion a recovery cycle is commencing, one where our big picture ambitions shall start to make sense.
One little puzzle has been the recent news that Barclays introduced restrictions on clients’ ability to transfer money to the leading cryptocurrency exchanges.
- ii view: diversification sets Barclays apart from the rest
- Barclays bears focus on negatives in Q1 numbers
- Why reading charts can help you become a better investor
Our curiosity is awakened, as we cannot see how the bank intends to make money from this manoeuvre. Unless we're about to see cryptocurrency exchanges run by the banks in the UK, perhaps intended to produce a respectable way of trading bitcoin etc, allowing the current restrictions to be lifted.
Despite the PR headlines saying the banks have introduced this restriction to protect their clients’ money, we're more than a little suspicious as to Barclays’ real motives, as banks’ own bottom lines generally provide the driving force for decisions.
If everything intends to go wrong for Barclays share price, it looks like falling below 169p shall prove troublesome, allowing the potential of weakness to an initial 150p.
If broken, our longer-term secondary calculates at 129p. Nothing is currently pointing in this direction. Hopefully Boris Johnson doesn't award the nation with another lockdown!
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.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.