Can Barclays shares deliver some Christmas cheer?
This high street lender hit target, then quickly pulled back. Independent analyst Alistair Strang explains what just happened and what could be next.
18th December 2023 07:57
by Alistair Strang from Trends and Targets
Share on
Barclays (LSE:BARC)' share price movements continue to prove incredibly frustrating. The price has recently performed in accordance with our expectations, effectively achieving our 152p target on Friday 15 December before retreating in utter panic as if aware of ‘the danger’ if it actually exceeded our target level. After all, surely the world will end if a banking share starts to perform logically.
On the subject of logic, we can hope weakness continuing below 146p shall discover an excuse to rebound from 144.2p, but if we’re blunt, there are plenty of reasons to anticipate Barclays delivering some Christmas cheer to the marketplace.
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It’s a pity the price didn’t better our 152p target as the implication is of hidden weakness. Any reversal below 144.2p theoretically allows for a visit to 136p, a target level we’re not confident about due to the amount of work employed in forcing the price above Red on the chart. The chart inset shows the effort made during November and December to respect Red, which makes us suspect it is unlikely there are any plans to plunge the share anytime soon.
If our optimism is to be reflected by reality, above 152p should now trigger share price recovery to an initial 157p with secondary, if bettered, at 168p.
The visuals currently indicate a risk of hesitation at the 157p given the level of prior highs, but should 168p be exceeded a further 181p shall be viewed as exerting an influence for the longer term. Unfortunately, such an event would return the share price to the level at which it started 2023, broadcasting the painful fact the entire year has been an utter waste of time.
Source: Trends and Targets. Past performance is not a guide to future performance.
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