Things look promising for Barclays
Our technical analyst takes a look at one of the FTSE's big bank stocks.
2nd August 2021 09:19
Our technical analyst takes a look at one of the FTSE's big bank stocks.
With shares, it's all a matter of where you're standing! If you'd bought Barclays (LSE:BARC) back in 2013, when the share price was at 300p and the media full of promise for the future, you're probably a little jaded at the journey you've been on, especially as the share is currently 174.5p.
Alternately, had you bought the share a year ago, you'd be rather chuffed, the price rising by a solid 74.5% in the interim.
Alas, we should all take a moment for the folk who bought in 2007 and that day in February the share price nearly hit 800p. It's always said trading shares is a long game but everyone envies those who opted to buy Barclays at 100p, exactly a year ago.
Things are starting to look promising, finally, for this share price. We've made a fair bit of noise about the 190p level looking crucially important for the longer term. Finally, it appears to be the case some hope is justified for this irritating level to experience a movement attempt.
Above just 179p looks capable of an initial 192p with secondary, if exceeded, at 199p. Both ambitions should provide a reasonable chance for Barclays to finally close a session above the critical 190p level, hopefully opening the gates to some proper longer-term recovery.
Once the share finds sufficient excuse to close above the 190p level, we regard 240p as exerting a pretty significant influence for the future.
We were fairly relieved the recent reversal failed to make it all the way down to our secondary 149p, instead opting to bounce at 156p.
Perhaps this implies some strength in the way the market is viewing Barclays. It's now the case below 161 threatens an initial 143 with secondary, if broken, at a bottom of 128p. Visually this appears unlikely.
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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