Barclays: future share price thoughts
21st June 2021 07:44
by Alistair Strang from Trends and Targets
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With the shares back at pre-pandemic levels, this analyst discusses potential for further upside at the high street bank.
Barclays (LSE:BARC) continues to tease the market, their share price carefully avoiding doing anything useful.
Three weeks ago, we mentioned 188p as a potential trigger level, and the share has avoided it with similar sentiment I apply to hinges. Despite whatever happened to Barclays (and the markets in general) on Friday, our normal rules suggest, quite firmly, Barclays is readying itself to gift traders some reasonable movement. It just needs to actually start going up!
The share price is presently fumbling around the 180p level and, as we’d anticipated, showing some hesitation as this markets the price level, prior to the Covid-19 drop. When we review other markets, both in Europe, Asia, and the USA, this hesitation has been standard behaviour until such a point when a share (or index) brakes free, painting Higher Highs.
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With Barclays, it appears about as certain as we can be now above 189p – a slight change in trigger level – shall gift movement up to an initial 223p initially with secondary, if exceeded, calculating at a future 238p.
When the share price decided to spend Friday, kicking open the gate into visual chaos, we’re not entirely convinced weakness will hang around. From a software perspective, there is a threat of weakness below 171p bringing travel down to an initial 161p with secondary 151p and, hopefully, a bottom.
We’re not sold on this concept, due to the price already being at the pre-pandemic level and secondly, because of the inset on the chart. The market, for whatever reason, inhibited Barclays rise earlier this year and, conventionally, this sort of thing can prove a free gift in the future as price movements tend be sharp and vivid. It’s “just” a matter of time.
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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