Despite a drop in the bank's share price, independent analyst Alistair Strang doesn't believe there's any need to panic.
When we reviewed Barclays' (LSE:BARC) share price a few weeks ago, we’d a fairly justified lack of optimism, a tone which appears justified.
Maybe it shall be the case of news from the Bank of England being poised to loosen (some truly absurd) mortgage lending rules.
From a strictly charty viewpoint, Barclays' share price now looks destined to head to 217p as the next major point of interest. The share price has already exceeded the high, pre-pandemic, of 184p, and while it’s tending to treat this level as a flat trend, essentially bouncing above and below, we’re hopeful for its future.
Now, when we apply similar growth models to those experienced in wider markets, should the 217p level be exceeded, we can now calculate 229p as a viable secondary ambition.
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The recent discovery of another variant for Covid-19 saw the share price gapped down by the market, in common with virtually everything else.
As a result, we are supposed to accept ongoing weakness below 180p should threaten reversal to an initial 173p with secondary, if broken, at 166p and hopefully a solid bounce. This level of reversal does not open the share up to panic, the price needing below 157p to justify serious concerns.
For now, we believe the price intends to head for 217p, just requiring unbelievable levels of patience and, ideally, no new pandemic.
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.
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