Should you still be optimistic about Barclays shares?
19th December 2022 07:49
by Alistair Strang from Trends and Targets
They're the worst performing UK bank share of 2022, but independent analyst Alistair Strang has run the numbers again. Here's what he thinks now.
Three weeks ago when we covered Barclays (LSE:BARC) we expressed a scenario where movement above 160.22p should promote travel toward an initial 169p. Our trigger level has been exceeded, the share price closing above on no less than four occasions.
However, subsequent price movements are proving less than generous, the highest price achieved being a parsimonious 162.8p. It’s still the case the share price needs to tumble below 148p to spoil our optimism, but we can refine (again) our upper target ambitions.
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The situation now is of movement above 162.8p expected to trigger travel up to an initial 169p with secondary, if beaten, now reduced to a viable looking 184p.
A contrary scenario is indicated should Barclays shares wander below 148p as reversal to an initial 145p is expected.
If broken, our secondary works out at 135p and hopefully a bounce. As the chart below shows, there are quite unpleasant indications in the event 135p breaks.
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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