Interactive Investor

Barclays: a ‘visual miracle’ is needed

Our chartist’s main concern is market stability. Here’s why he’s not confident on this bank.

9th November 2020 09:52

Alistair Strang from Trends and Targets

Our chartist’s main concern is market stability. Here’s why he’s not confident on this bank.

Barclays (LSE:BARC) 

A local newspaper here in Scotland put the entire US election into perspective. Their headline "Local Ayrshire Golf Club owner loses US presidential election bid" placed the US shambles in proper perspective.

However, similar to property sales, we shall only be convinced of the result when we witness who's waving from the balcony on 20 January. 
 
Aside from obvious entertainment value, our greater concern is more important. The markets prefer stability, and at present we're not comfortable we're seeing any signs among normal key shares.

Barclays (LSE:BARC) are a case in point. 

Presently trading around 110p, the share price needs a visual miracle above 135p to give early suggestions things are about to improve. 

Such a trigger is liable to be quite important, risking provoking a recovery cycle to an initial 192p. 

Only with closure above such a level shall drooling be approved, this strongly hinting longer-term miracle recovery toward 290p will become possible.

If things intend go pear-shaped, the share price requires weakness below 92p to justify a raised eyebrow. 

This calculates with the potential of coming reversals to an initial 82p with secondary, if broken, at a bottom (hopefully) of a less likely 68p eventually.

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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