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Barclays technical analysis: Breakout above £1.15 needed

By Nathan Batchelor

09:09, 7 May 2020

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BARC
Barclays
1.8645 USD
0.008 +0.430%

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Barclays technical analysis

Barclays share price is starting to consolidate around the £1.00 level, following a recent series of rejections from just below the £1.15 resistance level.

Barclays analysis shows that the banking stock could rally towards the £1.40 level if the £1.15 resistance level is overcome.

Barclays medium-term price trend

Barclays share price remains at its weakest level in over a decade, as the banking stock fails to attract buying interest around the £1.00 level.

Since the start of the year Barclays share price is currently trading down by around 45 per cent, however, the banking stock has recovered by over 30 per cent from the 2020 trading low.

Barclays technical analysis

Barclays technical analysis shows that a bearish triangle pattern took place earlier this year after price moved below the £1.35 level.

The daily time frame shows that bulls may retest the mentioned breakout area, around the £1.35 level, if they can force a breakout above the £1.15 level.

Failure to break above the £1.15 level will likely see sellers starting to target towards the £0.80 support area.

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Barclays short-term price trend

Barclays analysis shows that banking stock has a short-term bullish bias while price trades above the 0.9700 level.

The lower time frames currently show that a large inverted head-and-shoulders pattern has formed, following the second rejection from the £1.15 level.

Barclays technical analysis

According to the size of the bullish pattern the banking stock could rally towards the £1.40 level if a breakout above the £1.15 level occurs. 

Should we see price moving under the £0.80 level, the bullish pattern will be invalidated and the banking stock is then at risk of falling towards the £0.35 level.

Barclays technical summary

Barclays analysis highlights that the share price of the British bank could rally towards the £1.35 to £1.40 technical area if the £1.15 resistance level is broken.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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