Reversal signals at Barclays remain a worry
Barclays shares haven't traded below 140p for any length of time since late 2020, but independent analyst Alistair Strang has concerns about price performance.
4th September 2023 07:35
by Alistair Strang from Trends and Targets
It’s difficult to find anything interesting to write about Barclays (LSE:BARC) share price in our three-week update. When we previously reviewed the share, we cheerfully warned of several dangers which were imminent, none of which have come to fruition. There was a danger level at 143p and the price, spitefully, managed to close a session at 142.7p and marginally below the trigger. To rub salt into the wound, the next session Barclays closed at 143.04p and it almost felt like the market was mocking us.
However, it was August and expecting nothing rarely leads to disappointment!
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With regard to our expectations for Barclays, we still suspect the share is awaiting the right excuse to inflict misery on the market. Weakness now below 142.7p now calculates as capable of provoking reversal down to an initial 126p with secondary, if broken, at 123p and hopefully a proper rebound.
From a Big Picture perspective, if the 123p level breaks, there’s a pretty strong argument favouring 116p as being painted with trampoline juice.
Thankfully, we can also produce a converse scenario, now possible due to the care paid to our 143p trigger level. It’s possible the market simply doesn’t want Barclays' share price to go down, and early “proof” of such an attitude will come should the share exceed 155p, as this should now trigger price recovery to an initial 160p.
Our longer-term secondary, if such a level is bettered, works out at 168p and a movement which could prove game changing for the future. In the event the share price closes above the level of a prior high at 164.5p, it nullifies our expectations for reversal, instead sowing the seeds of distant growth to the 200p level.
But for now, the plethora of reversal signals remains a distinct worry.
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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