Barclays shares: an optimistic view
9th January 2023 10:08
by Alistair Strang from Trends and Targets
Independent analyst Alistair Strang reviews the UK retail bank.
Similar in our attitude toward the FTSE 100, we've been slipping into a mood of slight optimism when reviewing the retail bank shares.
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Barclays (LSE:BARC)'s share price is now looking capable of enjoying some good times. The price has finally achieved our 169p target and better still, closed above, the big picture presenting a fairly optimistic picture. Above 174p, signals a truly unimpressive chance of reaching 176p next.
This target level, obviously ridiculous, is probably best viewed as a trigger point.
Now above 176p calculates with the potential of a lift to 194p next with secondary, if exceeded, an interesting capability of a secondary at 216p, a ambitious target with useful visual prospects. As the green line on the chart highlights, such a hope for 216p suggests a level capable of producing some hesitation in Barclays share price, matching the closing price high both from last year and again, in 2018.
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The implication of 216p therefore has the unwanted baggage of those who've been trapped at these historical highs opting to bail, just to release funds. However, future closure above 216p is liable to signify something truly important for the share value as the concept of a distant 300p cannot be ignored.
The alternate scenario requires the share to skid below 150p, doubtless entering a cycle to 135p and hopefully a bottom.
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.
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