Barclays shares are capable of a miracle in the weeks ahead
Already up 10% in 2019, our technical analyst reveals how Barclays shares can keep the rally alive.
18th March 2019 08:46
by Alistair Strang from Trends and Targets
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Already up 10% in 2019, our technical analyst reveals how Barclays shares can keep the rally alive.
Barclays (LSE:BARC)
Today, Barclays (LSE:BARC) shares require to close a session above, roughly, 173.528p to better the ruling downtrend since 2007 and enter the land of milk and honey.
As a result, we need to look at any near-term scenario which should prove capable of pulling off such a miracle. To our surprise, there is something going on which theoretically should prove capable of such in the weeks ahead.
The immediate situation is fairly forthright with two, quite seperate, criteria claiming movement now above 167p should bring some recovery to an initial 173p. If it achieves this ambition following the current Brexit date, it will better the trend.
Closure above the blue line on the chart below enters a longer-term cycle to an initial 186p and hopefully beyond.
As the chart shows, these calculations are not terribly important in the great scheme of things, other than to prove a downtrend since the beginning of time can be exceeded.
The movements risk being consigned to the grey mist of history until such time as Barclays starts to achieve higher highs, essentially trading above 212p. To us, this means while 173p has become very probable, the share price is going to require considerably more before we dare to express optimism for a longer-term future.
If Barclays intends to fall off a cliff, the price needs to trade below just 157p to spell danger. A movement such as this will tend to draw it back into the clutches of 148p and below, perhaps considerably below. For now, we're a little optimistic for 173p.
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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