Still optimistic about Barclays shares
With the shares at their highest in over two years, this lender's chart has a positive message, says independent analyst Alistair Strang.
20th May 2024 07:36
by Alistair Strang from Trends and Targets
Next weekend is the Monaco Grand Prix, a race where it has become virtually impossible to pass the car in front on the track.
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This, oddly, has quite a lot to do with Barclays (LSE:BARC). Back in January 2022, the share price closed a session at 217.1p. Last week, it managed to close Tuesday at 217.2p, officially a higher high.
Similar to motor racing, this 0.1p difference can prove significant. A difference of 0.1 of a second in qualifying can make all of the difference, whereas during a race, it often doesn’t matter if the car behind is a little bit faster during a single lap as the only thing which counts is the ability to pass the car in front, something that rarely happens at Monaco.
We find, constantly, the biggest sane indicator on the stock market will be a share price actually closing higher, rather than simply trading higher during a session.
And Barclays, thankfully, by one-tenth of a penny, has achieved this. As a result, we’re supposed to continue oozing optimism for this retail bank share.
The immediate situation now suggests movement above 218p should make an attempt at 223.6p with our longer-term secondary, if bettered, at 246.6p. All things considered, it makes a lot of visual sense and hopefully world events don’t throw a spanner in the works.
Should things hit reverse, below 195p looks like it could be troubling, risking promoting reversal to an initial 181p with secondary, if broken, at a hopeful bottom of 164p.
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.Â
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