Patience needed with Barclays shares
They've just bounced off multi-year lows but the shares continue to test the patience of shareholders. Independent analyst Alistair Strang gives an update on prospects.
6th November 2023 07:31
by Alistair Strang from Trends and Targets
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Years of patience watching the UK’s retail bank sector has provided sufficient reserves of boredom, just waiting for something to happen.
To get out of their immediate mess, Barclays (LSE:BARC)' share price needs to close a session above 139p as this should rather neatly eradicate the reversal potentials.
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Closure above 139p should make surprise recovery to an initial 147p possible with secondary, if exceeded, at 161p and some probable hesitation, judging by the share price history at such a level. Future closure above 161p shall be viewed as quite a big deal, carrying an expectation of share price recovery to 181p and beyond.
In the event the market discovers an excuse to gap Barclays up above Blue on the chart, this is almost certain to be a big deal for the longer term, as it’s liable to be an early shot signalling proper price recovery.
Of course, we’ve an alternate argument, one which is quite painful. Movement now wandering below 129p risks promoting the concept of reversal to an initial 119p with secondary, if broken, at 116p.
The proximity of these target levels tends to suggest a share price bounce shall be possible, especially as any movement below 116p calculates with an eventual bottom potential at 100p.
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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