Barclays analysis: sceptical about price potential
17th October 2022 07:41
by Alistair Strang from Trends and Targets
Bank shares have had a strong few days, but are still way off their September highs. Independent analyst Alistair Strang assesses the chances of further recovery.
Virtually every stock market north of the equator has now broken its personal uptrend, since the pandemic lows of 2020 and, visually, there’s very little to be optimistic about.
Curiously though, south of the equator, the picture is less gloomy, Brazil looking surprisingly confident and even Australia failing to embrace the misery fully. Perhaps it’s indeed season related as, further north, Japan is sitting on the fence and fails to give a clue as to possible market direction. For Europe and North America, we lack confidence.
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Barclays (LSE:BARC) share price shares the wider market outlook. Presently trading around 142p, the share price needs close a session above 151p to negate our dire outlook. Even if the share traded above 151p, we’d start to lose confidence in our foul projections.
Now below 140p threatens ongoing reversal to an initial 128p with secondary, if broken, an eventual (hopeful) bottom of 98p.
Past performance is not a guide to future performanceÂ
Our converse scenario has produced a strange series of numbers involving a game with just 10p. Above 151p should now apparently trigger recovery to an initial 161p. Our ‘longer term’ secondary works out at 171p, allegedly as part of a path which eventually calculates with 201p.
Quite why everything works out in 10p increments utterly defeats us but, in this instance, we’re more than a little sceptical about 201p making an appearance without the benefit of game changing news.Â
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.Â
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