Price bounced off the support zone and also a trendline giving us a good opportunity to enter a buy. Market retraced at the 0.63% of the Fibonacci Level given another indicator to enter for bullish and also based on the two Harmonic patterns we have on the chart (one completed and the other is forecast) they are both indicating a bullish trend (Buy).
Raising Inflation and BoE stance on Interest Rates will change. Barclays have been clearing decks from the financial crisis and move towards a lean operational model focused on UK and US. As both central banks move towards controlling inflation, financial stocks may benefit from increased lending rates and quantitative tightening,
Barclays release the full year earnings on Thursday, there is an ascending triangle in place in anticipation of the release. Possible breakout on the long side could be tested at 267 which has been tested a couple of times before.
Barclays (BARC LN) – recently Co.’s shares have taken a hit after Trump gains ground in the election polls. Yesterday shares received a lift after UK courts decided that MP’s must be involved in the invoking of article 50. This led financial names and GBP to rally as a soft Brexit may be the outcome. Taking a look at the chart we are in a technical downtrend on...
Daily chart chows –
Falling trend line has been breached, however,
RSI is close to being overbought, while money flow index is going nowhere
Hence, failure to take out 175.45 (March 8 high) could yield a pull back to falling trend line level of 165 and 160 (23.6% of July 2015 high – June 2016 low).
On a larger scheme of things, the stock appears on track to...