Barclays for 27/06/2019

#SP500 #CAC40 Sometimes we rabbit on about “horizontal trends” and nowhere is the feature quite as demonstrated as Barclays share price since 2011. We’ve shown it with a Purple line on the chart, though perhaps it may be Magenta. Surprisingly, there was even military conflict regarding this, The Battle of Magenta between the French and the Austrians in 1859!

Spoiling the story, the colour conflict had nothing to do with the battle, especially as the dye was discovered in 1859 and named in honour of the event. It is interesting to note the leader of French forces was actually of Irish descent, his family driven out of Ireland due to English property confiscations, opting to settle in France. Patrice de MacMahon (Paddy to his mates) eventually became President of France!

Aside from a whimsical wander through history, along with an ongoing in-house debate regarding Purple or Magenta, we should really discuss what’s happening (or rather NOT happening) with Barclays share price.

Last time we reviewed it, we waxed lyrical about the dangers of 148.823p, if the share had the temerity to close below this level. Such a disaster has happened 3 times in the last week, salt being rubbed on the wound by the price also trading below 147p (apparently the final drop trigger) for a few hours. Yet, the price has not plunged into the abyss of doom, instead appearing to find some sort of excuse for a bounce.

Alas, this is where the Purple (or Magenta) line comes into play, a horizontal trend dating back 8 years and one we’d ignored, due to Barclays share price habit of dipping below this 147p line, only to recovery sharply thereafter. Only in 2016 – following the Brexit vote (circled) – did the price conclusively dip below this line but once again, sharply recovered. It’s important to accept therefore this trend can be broken. The situation now, from a Big Picture perspective, is of weakness below 146p now entering a cycle down to an initial 134p. Secondary, when broken, is a bottom, hopefully, of 114p.

To a degree, it feels we are clutching at straws, perplexed Barclays has avoided the opportunity to drive off a cliff. The answer to our confusion doubtless lies with politics and political uncertainty as we await white smoke coming from 10 Downing St chimney to tell us which bus driver has been anointed to actually steer the nation.

Currently, Barclays share price requires above 162p to suggest it has actually bottomed, in doing so entering a region where a cycle to 175p should commence. If bettered, a longer term 192p is now possible.

If we adhere to our “normal” rules, we must accept 114p looks like the eventual drop target.

FUTURES

Time Issued	Market	Price At Issue	Short Entry	Fast Exit	Slow Exit	Stop	Long Entry	Fast Exit	Slow Exit	Stop	Prior
10:13:33PM	BRENT	65.52									Success
10:15:00PM	GOLD	1409.66									‘cess
10:16:56PM	FTSE	7399.76									Shambles
10:19:28PM	FRANCE	5495.5	5492	5464.5	5425	5533	5533	5544	5561	5500	Shambles
10:21:51PM	GERMANY	12239.42
10:23:47PM	US500	2910	2909	2902.5	2882	2927	2934	2942	2953	2914	‘cess
10:26:14PM	DOW	26522
10:33:12PM	NASDAQ	7614.37									‘cess
10:38:42PM	JAPAN	21094									Sorry

 

 

 

 

26/06/2019 FTSE Closed at 7416 points. Change of -0.08%. Total value traded through LSE was: £ 6,030,549,903 a change of 13.52%