What next for Barclays shares?
27th February 2023 09:02
by Alistair Strang from Trends and Targets
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Independent analyst Alistair Strang has the latest on the FTSE 100 lender.
For Barclays (LSE:BARC), we have concerns. The blue line on the chart dates back to 2007. As trends go, it certainly appears to be valid, the market manipulating Barclays’ share price below this trend in a hysterical movement celebrating essentially nothing.
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The company CFO mentioned that pre-tax profits would have been up 9%, had there not been a need to increase the amount of money tucked under the bank’s mattress to cover a ‘potential’ rise in Covid loan defaults. She also said: “We are not seeing increases in arrears. If anything, they are lower than they were, and very stable.”
Source: Trends and Targets. Past performance is not a guide to future performance.
There was quite a lot about Barclays’ share price drop (circled) that failed to make sense, leaving us with a distinct suspicion that it’s just not the banking sector’s turn to experience positive movement. A contrived drop to force the share price below a 16-year trend felt just a little silly. We believe the next problem will arise should Barclays close a session below 169p as ongoing reversal to 160p looks very possible with our secondary, and hopeful bounce point, working out at 150p.
Our converse scenario, if any miracles are scheduled, comes if the bank share manages to close a session above blue (179p presently) as movement to 196p calculates as possible with our secondary working out at a visually pleasing 218p and almost certain hesitation.
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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