Barclays: how the shares can recover

With retail banking shares still in the doldrums, our chartist plots a recovery course for Barclays.

Barclays PLC (LSE:BARC) 

The Barclays (LSE:BARC) share price has been showing very slight signs for some sort of recovery, which are probably worth keeping an eye on soon.

From a big picture perspective, the problem the share price faces dates back to 2013 and the blue line on the chart.

At present, this trend is around 180p and only if the price exceeds blue will it remove itself completely from its current position, teetering on the edge of doom.

The price needs below 75p to generate serious alarm, now giving considerable hope for a rebound from 46p.

If broken, ultimate bottom is at 26p, with this unlikely level being the point we cannot calculate below.

Now we have examined the dangers, the price only requires to exceed 111p to signal hope for recovery as this should trigger a rebound to an initial 117p.

If exceeded, our secondary calculation works out at 125p. With closure above 125p, we can easily plan for future recovery to 147p.

In common with many shares, despite the potential of some price recovery, there's a big issue with the long-term downtrend and this gives a price level which risks proving quite distant.

The greater implication from this is a risk of extremely sharp falls, should stock markets find sufficient excuse for further reductions, painfully below the initial Covid-19 drop.

Basically, the markets appear to be solidly in a 'fingers crossed' position.

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.