Jump to content

Strong Barclays rally hits key technical resistance at £219.20 which short-term caps


Recommended Posts

Strong Barclays rally hits key technical resistance at £219.20 which short-term caps

Having risen by 10% year-to-date, the Barclays share price is taking a breather.

bg_barclays_249687696.jpgSource: Bloomberg
IG Analyst | Publication date: Monday 17 January 2022 

The Barclays share price, with higher UK rates in the wings, continues to surge upwards, trading at levels last seen in October 2015 and up over 10% year-to-date compared to the FTSE 100’s +1.14%.

Last week’s announcement that the bank won a high court case over a $131 million debt owed by Bavaguthu Shetty, the founder of two former FTSE 350 companies that collapsed amid a fraud scandal, seems to have been rapidly discounted, however, since the share price started to lose upside momentum on Friday.

This comes as no surprise after the quasi-uninterrupted day-on-day gains seen since the beginning of the year and end of week profit-taking. Added to this comes the fact that key long-term technical resistance has been hit. Technically speaking the Barclays share price has entered significant technical resistance seen between the June 2009 to November 2010 lows and the March 2012 high at £213.40 to £219.20, the upper reaches of which are expected to cap in the short-term.

Having said that, the long-term uptrend will stay intact while the share price evolves above the December 2021 trough at £176.30 with the January 2014 and August 2015 high as well as the 200-month simple moving average (SMA) at £245.30 to £252.10, providing an upside target zone for the months ahead.

17012022_BARC-Monthly.pngSource: ProRealTime
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 29/01/23 03:20
  • Posts

    • Capital, win loss ratio. If you have a trading edge and you can consistently win 50% of your trades, so your winning 5 trades out of 10. So if your risking 1% of your capital per trade, out of your 10 trades 5 would be losers, so that’s 5% loss and realistically out of the 5 winning trades, some would make small profits, some break even and 1, 2 or 3 could run nicely IF you can let your profits run, basically your making money out of 2 trades out of the 10 trades (80/20 Rule Pareto principle) So a $20,000 acct risking 1% is $200 per trade, this will keep the trader with his trade risk based on being able to win 50% of his trades. A long term trend trader can win with 30% wining trade. Basically you need to know your numbers. Rgds Pete
    • Investing in stocks can be a great way to grow your wealth over time. However, there are different approaches that investors can take when choosing which stocks to buy. Two of the most popular approaches are growth investing and value investing. Growth Investing Growth investing is an investment strategy that focuses on buying stocks of companies that are expected to grow at a faster rate than the overall market. These companies are often in industries that are growing quickly, such as technology or healthcare. Investors who use this approach believe that these companies will be able to generate higher profits in the future, which will lead to higher stock prices. One of the main advantages of growth investing is that it can potentially provide higher returns than the overall market. However, it is also riskier than other investment strategies, as these companies often have higher valuations and more volatile stock prices. Value Investing Value investing is an investment strategy that focuses on buying stocks of companies that are undervalued by the market. These companies may be in industries that are out of favour or have recently experienced challenges, but they have strong fundamentals and a history of profitability. Investors who use this approach believe that these companies are undervalued and that their true value will be recognized in the future, leading to higher stock prices. One of the main advantages of value investing is that it can potentially provide lower risk than growth investing. However, it may also provide lower returns in the long run, as these companies may not have the same growth potential as companies in the growth investing category. Comparing Growth and Value Investing Growth and value investing are two different approaches to stock investing, each with its own advantages and disadvantages. Growth investing can potentially provide higher returns but is riskier, while value investing can provide lower risk but potentially lower returns. An investor may choose one approach or a combination of both. A portfolio that contains a mix of growth and value stocks can provide a balance of potential returns and risk. Conclusion Both growth investing and value investing can be effective ways to invest in stocks. The key is to understand the potential risks and rewards of each approach and to choose the one that aligns with your investment goals and risk tolerance. Analyst Peter Mathers TradingLounge™ 
    • I am a beginner, and I must say, there are a lot of rules to the trading game that one must abide by if they want to be successful.   Here, the writer mentions several basic rules for day vs swing trading.  However, I find that often times, the reasoning for these rules is not as  obvious for a beginner as it may be for an expert.   The 'why' factor if I may. For example, why must you have a large capital to trade with as a day trader? Because your positions must be large so that a small change in price will be augmented and turned into a large profit. Also, with such high risk, the margin will be specially high, given the trader is taking up large positions at a time.  Without a large amount of capital, positions may be forced to close due to funds being below margin requirements.  When this happens, you can expect to lose tons of cash, fast.  I learned the hard way. All the best, David Franco      
  • Create New...