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%

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