Barclays shares could dive 23% if they break this level
After a recent tumble, our chartist explains why Barclays shares threaten to open the 'gates of gloom'.
28th May 2019 09:00
by Alistair Strang from Trends and Targets
Share on
After a recent tumble, our chartist explains why Barclays shares threaten to open the 'gates of gloom'.
Barclays (LSE:BARC)
Our previous review of Barclays (LSE:BARC) had a pretty miserable expectation should the share price break below our drop target. Unfortunately, this has now happened and there's the slimmest of margins inhibiting it opening the gates of gloom. The problem number is currently 148.82p.
In the event Barclays closes a session below 148.823p, we're looking for traffic down to an initial 136p. To be blunt, if it even trades below 147p, it shall be viewed as entering this reversal cycle.
Our secondary, if 136p breaks, calculates at 114p. It's rather worrying to note, we've two quite distinct arguments suggesting Barclays share price intends take a visit down to the 114p level eventually.
About the only encouraging signal left is fairly simple. The share has not yet closed below the red uptrend since 2009, hence our fascination with 148.823p.
However, the share price has broken below this trend during the last two sessions, so we'd be far from confident the trend line shall hold.
There's obviously the risk of the somewhat confused series of political results from the EU election entering the fray, if any of the mainstream politicians actually can decide what they stand for.
At present, Barclays is required to exceed 165p to convince us it has exited the drop zone to 136p eventually.
Visually, there's quite a strong suggestion the price will head to 136p, execute some sort of short-lived bounce, then eventually wander downward to 114p.
It needs to exceed 166p to signal our misery is misplaced, allowing recovery to an initial 174p. If bettered, secondary is at 191p.
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.