Barclays shares are looking a bit bubbly
Having broken above a long-term downtrend at the start of the year, the high street lender remains in what independent analyst Alistair Strang calls 'hopeful territory'. Here's why.
25th November 2024 07:02
by Alistair Strang from Trends and Targets
It looks like we should be enjoying a reasonable end to November as the markets appear to be twitching upward in preparation for the next five days. What’s a bit interesting about this is the level of patience probably required as we’ve been waiting all year for this movement.
But the problem is actually much harder to swallow, due to a movement in February of this year which “gapped” the share price of Barclays (LSE:BARC) up above Blue with a spectacular jump from 149p to 157p at the open.
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This Blue line started in February 2007, a mere 17 years earlier, but the market obviously felt it was a hurdle to jump over. We’re probably being a little daft, as waiting nine months for something significant to happen after being impatient for the prior 17 years, is expecting miracles too soon.
The share price has certainly nudged into the “hopeful” area of charts. Movement next above 265p now points at share price recovery to an initial 289p with our secondary, if bettered, at 313p.
Obviously, the fairly close proximity of these target levels implies the possibility of another plateau level. Visually, this makes some sense but, overall, we shall not be able to dodge the concept of a long term 404p as exerting an eventual attraction.
If trouble is planned, below 237p should give an initial justification for panic, possibly a precursor for reversal to an eventual bottom of 175p! Currently nothing suggests this.
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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