Why Barclays shares face very real danger this Christmas
Its shares have had a great run, but Barclays has now reached a key point in its progress.
21st December 2020 09:50
by Alistair Strang from Trends and Targets
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Its shares have had a great run, but Barclays has now reached a key point in its progress.
Barclays Plc (LSE:BARC)
"It's beginning to feel a lot like chaos" almost sounds like a song title. With Covid-19 causing the UK's isolation from Europe, only within Britain could things become more stupidly enacted.
News of the new version of the virus apparently not becoming dangerous until after Xmas, unless you live in Wales, provoked some ridiculous behaviour.
Here in our bit of Scotland, the usual invasion by grandchildren for the holiday break has been adjusted, thanks to travel within Scotland not being allowed after Xmas day.
Of course, thrown into this mix has been the failure of the UK and Europe to complete their Brexit talks, the latest health emergency ensuring the political self-imposed deadline was missed on Sunday.
None of this has anything to do with Barclays (LSE:BARC) share price. Or does it?
Our previous review against Barclays three weeks ago gave criteria for the share to boost to 154p, a number which has been completely absent from recent movements. Instead, the price achieved 150p before flopping back to 135p.
This version of reality has imposed itself across many members of the FTSE 100, the index clearly feeling the indecision broadcast by a UK government seemingly more concerned with headlines rather than substance.
We shall be quite concerned if Barclays (presently trading around 145p) finds an excuse to fall below 137p on the chart (red) as this feels capable of providing reversal to an initial 125p with secondary, if broken, at a bottom hopefully of 116p.
There's a very real danger if the share price finds an excuse to close a session below 116p, sharp reversal to 68p becomes viable.
There is some hope available, the share price needing to trade above 150p to impart the potential of Christmas cheer.
Above this level, recovery to 161p calculates as possible with secondary, if bettered, a rather more useful 190p.
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.
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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