Barclays shares: far from convinced the rising cycle is complete
Independent analyst Alistair Strang reveals what his charts say happens next.
2nd September 2024 09:28
by Alistair Strang from Trends and Targets
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Barclays, despite a lethargic time since the financial crash of 2009, has not seen the need to indulge its share price in any form of share-price mangling, but we do wish the markets would discover an excuse to propel the price above 400p into game-changing territory.
There are some early signs this sort of miracle is possible with Barclays (LSE:BARC),trading at 228.4 at time of writing.
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On the chart is a blue downtrend which dates back to 2007. In February this year, the market opted to gap Barclays up above this trend (circled), ticking the first box in a required list to show that the trend may have changed.
Performance in the months since has seen Barclays grow from February’s 150p to a high of 241p at the start of August, a rise of just over 60%, which can’t be sneezed at.
Source: Trends and Targets. Past performance is not a guide to future performance.
Despite current fun and games, we’re far from convinced the rising cycle is complete, suspecting above just 234.1p will be sufficient to provoke gains to an initial 252 with our secondary, if beaten, at 263p and the need for the share price to close at or above such a level.
We will regard such an occasion as important, dumping the price into a big-picture cycle which hopes to illustrate 361p as a future target with our secondary, if bettered, at 411p, where the share price will find itself in game-changing territory.
Any attempt to slow things down require Barclays’ share price to be taken below 200p, suggesting reversal to 182p and a very possible bounce.
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.
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