This is the trigger for Barclays shares to race higher
16th January 2023 07:41
by Alistair Strang from Trends and Targets
With Barclays trading as high as it has done since February last year, independent analyst Alistair Strang shares his findings after another look at the charts.
Barclays (LSE:BARC)' share price continues to amuse everyone and now faces a little challenge.
The share price has a Blue Line, a downtrend which dates back to 2007, and we’re increasingly curious as to whether it shall have an affect on share price performance in the near term.
- Invest with ii: Open an ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA
Friday gave us sufficient reason for thought, the market taking the price almost to this trend line, only to hesitate in the final few minutes of trade.
This downtrend calculates as being at 181.15p at time of writing. Our software demands closure above this level as being the trigger to commence a movement cycle to an initial 194p.
Our longer term secondary, should such a point be exceeded, works out at a sane looking 216p, the same price level achieved as a high in 2022 and therefore, deserving some hesitation. We’re teasing with a discrete line at a long term 288p, this calculating as a potential target with movement above 216p.
Source: Trends and Targets. Past performance is not a guide to future performance.
For everything to go wrong, Barclays now needs below 156p to possibly trigger reversal to an initial 147p with secondary, if broken, a hopeful bottom still at 135p.
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
These articles are provided for information purposes only. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.