Barclays: can the share price prevail to this level?
It's been a tough year for the retail bank. Our chartist looks for a potential recovery.
28th September 2020 09:38
by Alistair Strang from Trends and Targets
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It's been a tough year for the retail bank. Our chartist looks for a potential recovery.
Barclays (LSE:BARC)
Will Barclays (LSE:BARC) ever become a Disney princess? Stranger things have happened.
Only today, while standing looking at a depressingly large pile of logs awaiting the attention of an axe, the writer was anointed with nature’s favour, finding himself frozen in place with a red squirrel on his shoulder!
A couple of the things were squabbling noisily, the argument turning into a chase. Suddenly one changed course, running up my trousers and settling on my shoulder for a few seconds.
Abruptly, with a brief squirrel swearword at its opponent, it leapt onto a tree stump and ran off. The other squirrel just glared down at me.
To be honest, during the encounter, feeling like a Disney princess was quite far from the mind. Instead my main feeling was terror at the chance of being mugged by two red squirrels.
As the unexpected squirrel reminded, strange things can happen in real life, so we're looking (again) for any signal of redemption for Barclays share price.
Our previous analysis three weeks ago suggested the potential of reversal to 95p initially, with secondary, if broken, at 85p.
Since then the lowest achieved has been 88p, so perhaps this is an indication of implicit strength.
To be honest, we've considerable doubts about this. But we'd prefer examine the early warning signs should Barclays opt to return from the dark side.
Presently trading around 91p, Barclays needs to exceed 99p to promote the possibility of further recovery toward 103.5p.
Obviously this is a pretty insignificant movement, but above 103.5p will imply any bounce is real, ticking a pretty important box in our criteria.
Above 103.5p and we can mention 113p as a fairly solid ambition, perhaps even 128p if positive market conditions prevail.
Unfortunately, this about exhausts our efforts to put a positive spin on things.
The situation now exists of weakness below 88p risking triggering reversals to 82p next with secondary, if broken, at a painful bottom of 65p and hopefully a proper rebound.
We have a depressing feeling the share price will fall to 65p eventually.
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.
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