Where next for Barclays’ share price?
Last time our chartist predicted the initial target level. Will he be right again?
19th October 2020 10:10
by Alistair Strang from Trends and Targets
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Last time our chartist predicted the initial target level. Will he be right again?
Barclays (LSE:BARC)
Every week we feature one of the main retail banks as our opening article, and every week we hope the share price shall do something positive.
This effectively means we start each week pretty disappointed the sector is still failing to perform.
When we last covered Barclays (LSE:BARC) three weeks ago we'd optimistically reported 103.5p as a possible initial target level. If exceeded, our secondary was at 113p.
But something funny happened. The price achieved our initial target level, moved above it for four sessions with the rise eventually losing interest in life around half way to our all-important secondary.
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We're inclined to treat this as perhaps signalling a lack of strength and commitment, making us suspect another round of floundering about aimlessly is due to commence!
If this is indeed the case, weakness next below 98p calculates with the potential of reversal to an initial 92.5p with secondary, if broken, at 87p.
In a normal world we'd hope for a proper bounce if the secondary is achieved but there's a distinct big picture worry due to the visuals indicating such a movement takes the share into the land of lower lows.
Perhaps we're being too dramatic, as Barclays now needs only to exceed 105p to next suggest movement coming to an initial 109p with secondary, if exceeded, a less likely (given recent behaviour) 116p.
One item we shouldn't ignore; the share price has not closed below the point at which it broke the immediate downtrend.
Had the company managed to close a day below 99p, this would confirm the onset of weakness.
Instead, care has been taken to ensure this was not the case and so perhaps hope is justified.
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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