Can Barclays shares make a turnaround stick?
Blue-chip banks have been major casualties of late. Our chartist looks for a positive catalyst.
3rd March 2020 09:06
Blue-chip banks have been major casualties of late. Our chartist looks for a positive catalyst.
Barclays PLC (LSE:BARC) & DOW
Completing our monthly wade into the sewer which is the retail banks, Barclays (LSE:BARC) managed to flush itself quite thoroughly down the plughole. At the end of January, we gave a fairly unambiguous outlook as shown in the image below.
Visually, there's some hope for a rebound anytime soon as the price challenges the red uptrend since 2009.
At present, any rebound needs to exceed 158p to give some slight hope as this calculates with the potential of recovery to 166p.
If beaten, our secondary works out at 185p, visually pretty impressive but failing (currently) to exceed blue and scurry into safety for the longer-term.
What happens if the share price now withers below 139p?
Initially we're looking at weakness to 135p but, should such a point break, life becomes pretty dangerous for Barclays with the potential of 90p making itself known as secondary.
Thankfully we're keeping things brief tonight (Monday) as we've been mesmerised by the US markets during their final 90 minutes of trade.
Witnessing the Dow Jones achieve a 5.1% rise was truly unusual, suggesting recent panic drops have been exaggerated, resulting in a situation where some strong recovery across the markets can be hoped for.
In the case of the Dow, allegedly, moves now above 26,750 should prove capable of an 1,100 point rise!
Unless, of course, someone sneezes.
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.
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.
Editor's Picks