Stock Selection: How to Tip the Tailwinds in Your Favour Stock selection is a game of fine margins but understanding a few key factors can tilt the probability of success in your favour. By focusing on these crucial elements, you can ensure that when it comes to buying stocks, you’re sailing with the prevailing tailwinds rather than fighting against them.
1. Don’t Fight the Market
Ever heard the saying, “a rising tide lifts all ships”? This holds true in the stock market. Favourable market conditions can make an average investor look like Warren Buffett. When the market is stable, it allows other factors to shine, while a risk-averse environment can dampen even the best stock’s performance.
Don’t overthink this concept—use simple moving averages, such as the 50-day and 200-day, when analysing the index. Pair this with basic structure analysis to assess overall market conditions. Ask yourself: What is the long-term trend in the index? What is the current momentum? What does the price structure look like? The better the market conditions, the more aggressive you can be in your stock selection, as the broad tailwinds are stronger.
Example: FTSE 100
The FTSE 100 index has been navigating a choppy sideways range since May, but there are still signs of optimism beneath the surface. While we’re not in a full-blown bull market, the 50-day moving average (50MA) remains comfortably above the 200-day moving average (200MA), and both are sloping upwards—indicating a long-term uptrend. Prices are currently hovering near the 50MA, suggesting the market’s tailwinds remain mildly favorable, even amidst some volatility.
FTSE 100 Daily Candle Chart
Past performance is not a reliable indicator of future results
2. Earnings Catalysts: The Power of Post-Earnings Drift
Positive earnings surprises can work wonders for any stock. They often create price gaps that signal strong short-term momentum. Moreover, positive earnings surprises can take time to be fully ‘priced in’ because large institutional investors typically stagger their investments over time. This phenomenon, known as post-earnings announcement drift, can lead to continued price appreciation following an earnings beat.
Look for stocks that have recent positive fundamental catalysts in their price history. This focus can give you a clearer path toward potential gains.
Example: Barclays (BARC)
In February, Barclays revealed a strategic plan that reignited investor confidence and sparked a sharp breakout in its share price. The bank announced a £10 billion buyback program, coupled with £2 billion in cost cuts, aiming to boost profitability and efficiency. Barclays also set its sights on delivering returns in excess of 12% by 2026, with a renewed focus on its higher-margin UK consumer and business lending divisions. This announcement acted as a major earnings catalyst, forming the foundation for a strong uptrend that followed.
BARC Daily Candle Chart
Past performance is not a reliable indicator of future results
3. The Buyback Bounce: Share Buybacks
Companies that initiate share buybacks signal confidence in their stock and a commitment to returning value to shareholders. When a company buys back its shares, it reduces the total number of outstanding shares, often resulting in an increase in earnings per share (EPS) and potentially boosting the stock price.
While this isn’t an exact science, a stock undergoing a share buyback that meets the other criteria on this list can provide a solid tailwind for your investment.
Example: Mastercard Incorporated (MA.)
In the second quarter of 2024, Mastercard repurchased approximately 5.8 million shares for $2.6 billion. Through the first half of 2024, the company bought back 10.2 million shares at a total cost of $4.6 billion. As of July 26, 2024, MA had repurchased an additional 1.9 million shares for $820 million, leaving $8.7 billion remaining under its approved share repurchase programs. These strategic buybacks not only reflect Mastercard's strong cash generation capabilities but also underline its commitment to enhancing shareholder value, making it an attractive consideration for investors seeking growth.
MA. Daily Candle Chart
Past performance is not a reliable indicator of future results
4. Focus on Financial Quality
When hunting for stocks, there’s often a tendency to bargain hunt, looking for those poised for a bounce. However, we believe that, over the long term, high-quality companies are best positioned to outperform the market. You don’t have to be a Wall Street analyst to develop a robust quality filter. The following financial metrics can help ensure that the stock you’re buying is solid and less likely to face dilution:
• Return on Equity (ROE): Most companies will claim they are high-quality businesses that prioritize investors, but checking this metric helps verify their claims. A high ROE of 15% or more indicates efficient use of equity and a commitment to shareholder value.
• Free Cash Flow (FCF): Cash is king for a good reason. Strong free cash flow means the company generates ample cash after covering its operational expenses, allowing for reinvestment or returns to shareholders. A FCF yield of 5% or higher is typically desirable.
• Debt-to-Equity Ratio: While balance sheet strength may sound boring, it’s crucial. A low debt-to-equity ratio, ideally below 1.0, suggests a company is not overly reliant on debt to fuel growth, making it less vulnerable in downturns.
Example: Morgan Sindall (MGNS)
With a Return on Equity (ROE) of 22.7%, Morgan Sindall significantly exceeds the 15% benchmark, showcasing effective management and strong profitability. Its Free Cash Flow yield is an impressive 10.81%, well above the desirable 5%, reflecting robust cash generation capabilities. Furthermore, the company boasts a negative Debt-to-Equity ratio of -0.49, highlighting a strong balance sheet with no net debt and low financial risk. These qualities are also evident in its strong price chart (see below).
MGNS Daily Candle Chart
Past performance is not a reliable indicator of future results
5. Long-Term Trend Structure
Just as analysing the strength of the overall market can create headwinds and tailwinds, you should also be mindful of a stock's price history and calibrate your expectations accordingly. An old adage that has stood the test of time is, “trends take considerable time and effort to change.” This doesn’t mean you should buy stocks that have undergone prolonged underperformance, but it does mean you should be cautious and aware of a stock’s long-term trend when making decisions.
Example: Marathon (MARA Holdings)
A quick look at Marathon’s daily chart shows prices oscillating around the 200-day moving average, indicating a period of indecision. The trend lacks clear direction, with momentum appearing tepid at best. Given the uncertainty, investors should be cautious about taking trend continuation or momentum trades here until a clearer signal emerges.
MAR Daily Candle Chart
Past performance is not a reliable indicator of future results
Conclusion
When it comes to stock selection, leveraging favourable market conditions, earnings catalysts, share buybacks, financial quality, and trend structures can enhance your investment strategy. By aligning your selections with these key factors, you can tip the tailwinds in your favour and increase your chances of success in the ever-evolving stock market.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
BCS trade ideas
3 UK Stocks to WatchLet’s take a look at three FTSE 100 heavyweights demonstrating high levels of relative strength.
Barclays (BARC): Strategic Update Sparks Share Surge
Barclays' share price has been in a powerful uptrend since unveiling a strategic update in February. The bank's three-year plan includes significant initiatives such as:
• Cutting costs by £2 billion
• Returning £10 billion to shareholders
• Investing heavily in its profitable UK arm
Barclays plans to allocate an additional £30 billion in risk-weighted assets to its UK retail bank by 2026. As part of its restructuring efforts, the bank will review its payments business and has introduced a new organisational structure with five operating divisions. Additionally, Barclays announced a total return of £3 billion to shareholders for 2023, including a share buyback and a final dividend.
On the price chart, shares have been consolidating sideways in recent weeks, forming a box pattern. This high and tight consolidation indicates trend continuation, and momentum traders could consider buying a breakout above the consolidation box with a stop loss below it.
BARC Daily Candle Chart
Past performance is not a reliable indicator of future results
Experian (EXPN): Data Dominance Continues
Experian's dominance in data continues as the company reported strong financial results and a promising outlook in its recent full-year results.
For the fiscal year ending 31 March, Experian showed impressive market strength, with organic growth reaching 8% in the fourth quarter and 6% for the full year. This performance exceeded analyst expectations, causing the shares to gap higher.
Total revenue from ongoing activities surged to $7.06 billion, reflecting an 8% increase from the previous year or 7% growth at constant exchange rates. Underlying profit (EBIT) saw a notable rise, increasing 7% to $1.93 billion, further solidifying Experian’s financial standing.
With shares consolidating sideways, trend continuation traders could consider buying at support or waiting for a breakout above the consolidation highs.
EXPN Daily Candle Chart
Past performance is not a reliable indicator of future results
Vodafone (VOD): German Growth Resumes
Vodafone has significantly underperformed the market in recent years with growth stagnating in key markets. However, the telecom giant’s recent trading update highlighted the progress of its turnaround plan, noting Germany’s return to growth following the divestment of its Spanish and Italian operations.
Under CEO Margherita Della Valle, Vodafone has embarked on a transformation, streamlining its operations and addressing underperforming markets. Despite a 74% decline in FY24 operating profits, primarily due to exceptional gains in the previous year, Vodafone remains focused on cost-cutting measures, having already reduced its workforce by 5,000 roles with plans to cut an additional 2,000 positions as part of a €1 billion cost reduction target.
The market has responded positively to Vodafone’s recent updates, with shares surging through key resistance in May. After retracing within a small descending channel, shares are starting to break higher again, signalling that Vodafone’s recovery may have further to run.
VOD Daily Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.84% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
BARCPotential buy/long
Barclays plc is a British multinational universal bank, headquartered in London, England. Barclays operates as two divisions, Barclays UK and Barclays International, supported by a service company, Barclays Execution Services.
Trading Idea: Buying Barclays PLCDuring the previous 5 days, Barclays has experienced a significant increase in its stock price, rising by 7.46%. This suggests a bullish momentum in the short term and presents a potential trading opportunity.
Currently, Barclays has a market cap of $27 billion. The previous day's trading volume totaled 9.74 million shares, slightly below the multiday average of 12.89 million.
Reasoning:
Barclays PLC has a high operating profit margin of 29.98%. The operating profit margin measures how much profit a company makes from its operations, indicating its efficiency and profitability. Companies with high operating profit margins are often able to generate strong returns for their shareholders.
Over the past 5 days, Barclays' share price has appreciated by around 7.46%. However, its performance this year has been 0.27% lower than the Nasdaq.
Based on these facts, buying Barclays stock aligns with the strategy of identifying companies with strong short-term profitability. The high operating profit margin indicates that the company is generating significant profits relative to its operating costs.
However, it is important to note that this trading idea carries an extremely short investment horizon and an exceptionally high risk tolerance. Short-term trading strategies are subject to market volatility and can result in significant losses if the market conditions change.
Technical Outlook
Barclays is currently approaching a key support level around $6.89. If the stock breaks below this level, it could imply further losses. However, if it fails to break below this level, it might indicate a retracement. Also, Barclays price action is also poised to test $7.27, a key upper Bollinger Band® level.
In addition, Barclays' price action is currently approaching an active Fibonacci support level at $6.76.
The market price for Barclays is currently above the rolling moving average, indicating an unusually high price. This suggests that long positions are likely to prevail in the coming days.
The worst is over for Barclays Bank?One of the Uk's 'big four' banks, Barclays bank is looking to make a comeback after being in a corrective phase(or downtrend) for more than a year and a half.
The stock made an impulsive up move from the march 2020 bottom and the same went on till Jan 2022.Since then however the stock entered the 'wave 2' correction and has remained in it for more a year and a half.
At the most recent Oct 2023 low however, the corrective wave counts for the stock seem to have come an end and it should be expected to now start a fresh 'wave 3'.
The stock held its 61.8% retracement on three different occasions and managed to reverse from it almost immediately every time it visited it.
On the way up the stock faces its first hurdle from the falling trendline at 155 and then at previous 'x' wave top at 166.44 respectively.
On the downside the low of 128.12 is crucial for the stock.
The stock is expected to gain momentum upon closing above the falling trendline.
It should also be noted that Barclays is a significant component of the FTSE 100.
The 'wave 3' projection is expected to take the stock from current levels to around 250-260 mark.
Note*- This chart is for educational purpose only.
Barclays Gap Lower on Q3 NumbersBarclays (BARC)
Financial Snapshot:
Barclays announced a 16% decrease in profit for the third quarter. This decline was primarily attributed to sluggish revenue growth in its UK retail division and lackluster performance in its investment bank, impacted by a shortage of M&A deals and reduced trading activity. However, Barclays managed to exceed expectations by achieving a net profit of £1.3 billion.
The bank also sustained a 5% increase in overall group revenue, reaching £6.3 billion, aligning with market projections. Notably, Barclays allocated fewer funds for bad loans than the market had predicted.
The UK retail division experienced a 3% dip in attributable profit, mainly due to customers shifting deposits away from higher-interest-rate products. Barclays anticipates a decrease in its net interest margin for 2023, now expected to fall within the range of 3.05% to 3.10%, down from the previous guidance of 3.2% to 3.15%. This metric is one to watch, especially with domestic peers like NatWest and Lloyds Banking Group preparing to report their quarterly results soon.
In the investment bank, income decreased by 6% to £3.1 billion when adjusted for a bond overissuance error from last year. Fixed-income trading saw a notable 26% decline, while equity trading revenue more than doubled. Advisory and capital markets fees dropped by 30% due to fewer takeover deals and reduced debt issuance.
Market Reaction:
The market has so far responded negatively to Barclays' Q3 results, causing a share price to gap lower at the opening of today's trading session.
Interestingly, this price gap breached two levels of horizontal support that were established by the summer swing lows. This negative gap is likely to create a layer of resistance on Barclays' price chart in the future.
Prices now appear poised to retest the lows seen during the Silicon Valley banking crisis spike that occurred in March (see chart below).
BARC Daily Candle Chart
Past performance is not a reliable indicator of future results.
Risk Management:
The release of financial results tends to amplify a stock's volatility. For those considering trading Barclays, the Average True Range (ATR) serves as a valuable tool to help traders account for a stock's volatility when setting stop losses and limit orders.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
Top Shorts 8/28My Top Short Mix Plays at the moment!
These are selected based on Market Cap, Volume and Current Trend.
undervalue, growth and dividenIt used to trade at 40 USD
Too undervalue, still has growth in Q1, one of the oldest bank.
and I just love Premier League.
Of course it's a long game.
Barclays Bank: Descending Triangle Visible on Quarterly ChartBarclays is currently trading within a Descending triangle that is visible on the Multi-Month Timeframes. It has had some wicks below the Demand Line already, but has yet to truly break down.
Whenever it decides to truly break down, there are really no supports below it, so I think it will go and make new all time lows and reach one of the Fibonacci Extensions below; which would take it below a dollar.
Barclays Elliott wavestextbook formation
Barclays PLC closed 2022 with a strong performance, accumulating £7 billion of pre-tax profits.
However, BCS stock dropped as much as 8% in the trading session following the bank's Q4 2022 report (London trading reference).
This was due to a higher cost of risk and a drop in fee income at Barclays' investment bank, partially offset a robust performance at its consumer lending business.
However, reflecting on a higher yield environment for all asset classes, I see strong profitability for Barclays in 2023, and I upgrade my EPS expectations for Barclays through 2025.
With a $26.4/share price target, Barclays remains a high conviction "Strong Buy."
Barclays gains to be capped.Barclays - 30d expiry - We look to Sell at 172.38 (stop at 178.52)
175 continues to hold back the bulls.
Broken out of the Head and Shoulders formation to the upside.
The primary trend remains bearish.
Bespoke resistance is located at 173.
Early optimism is likely to lead to gains although extended attempts higher are expected to fail.
Resistance could prove difficult to breakdown.
Our profit targets will be 157.12 and 152.12
Resistance: 162.50 / 167.00 / 173.00
Support: 155.60 / 150.00 / 145.00
Disclaimer – Saxo Bank Group.
Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
BARC to break from IH&S.Barclays - 30d expiry - We look to Buy a break of 152.62 (stop at 145.44)
We are trading at oversold extremes.
A bullish reverse Head and Shoulders has formed.
Short term bias has turned positive.
Prices have reacted from 132.06.
A break of the recent high at 152.22 should result in a further move higher.
Our outlook is bullish.
Our profit targets will be 170.78 and 175.78
Resistance: 151.00 / 160.00 / 170.00
Support: 143.00 / 140.00 / 132.00
Disclaimer – Saxo Bank Group.
Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
Barclays has no bulls at all. Yet.Barclays - 30d expiry - We look to Buy at 140.42 (stop at 134.98)
Price action continued to range between key support & resistance (140.00 - 175.00) and we expect this to continue.
We are trading at oversold extremes.
Short term momentum is bearish.
Early pessimism is likely to lead to losses although extended attempts lower are expected to fail.
Support is located at 140.00 and should stem dips to this area.
Support could prove difficult to breakdown.
With signals for sentiment at oversold extremes, the dip could not be extended.
Our profit targets will be 154.48 and 159.48
Resistance: 150.00 / 155.00 / 160.00
Support: 144.00 / 140.00 / 135.00
Daily perspective
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
$BCS with a Bullish outlook following its earnings #Stocks The PEAD projected a Bullish outlook for $BCS after a Positive Under reaction following its earnings release placing the stock in drift A with an expected accuracy of 100%.
Barclays: Money not in the bank Barclays
Short Term
We look to Sell at 171.28 (stop at 176.42)
Previous resistance located at 170.00. Although the bulls are in control, the stalling positive momentum indicates a turnaround is possible. We look for a temporary move lower. We therefore, prefer to fade into the rally with a tight stop in anticipation of a move back lower.
Our profit targets will be 160.82 and 151.60
Resistance: 170.00 / 175.00 / 195.00
Support: 160.00 / 151.00 / 143.00
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis, like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis, as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
$BCS with a Bearish outlook following its earnings #Stocks The PEAD projected a Bearish outlook for $BCS after a Positive over reaction following its earnings release placing the stock in drift B with an expected accuracy of 66.67%.
BARCLAYS - Clear As Day - Buy @163p
REASONS TO BE BULLISH
Technical - Recently broke out of a 15 year pennant pattern and just retested for support.
Technical - Recently crossed and reclaimed the 50 MA.
Technical - MA 50 looking like it may cross the 100 and 200 in future months.
Technical - RSI is in the bull zone (bouncing off its base).
Technical - A 155p entry was triggered when reclaimed MA and RSI bull-zone on the same candle. We're now at almost the same level.
Technical - All-time high was back in 2007. This stock hasn't been touched in 15 years and is now winding-up to revisit the top of the upwards slanting trend-line.
Technical - Looks like wave 1 of a 5-wave move is complete/near completion.
Fundamentals - Price to earnings is just 4.7. Barclays is looking like incredible value right now. Net earnings up 275% for the year.
Fundamentals - Dividend yield is ~4% - not to be sniffed at all in this environment - they may even increase this given how profitable banking with current accounts may turn out to be if the BOE base rate continues to increase.
Fundamentals - Implied volatility in the options market is increasing, and it seems like some big players may be eyeing-up Barclays for a big position (likely long but perhaps short).
Fundamentals - Less exposed to the U.K. than some of its counterparts (like Lloyds). With U.S. and India appearing in their Top 4 countries in terms of investment.
Target 1 - First target would be reaching the underside of the purple channel once more at 260p or £2.60. A 60% move off todays prices.
Target 2 - Next profit target would be 750p or £7.50 (a 4.6x move). That could be attainable fairly quickly in the next decade on current trajectory. I don't normally like to post timescales but I am curious to see how this one plays out.
Target 3 - The white top line coincides with the 2.272 and 2.414 fib extension (from Mar20 to Mar22). This generates an ultimate price target of between £10.50 (1050p) and £17.30 (1730p). This matches with the extension from the height of the pennant (top to bottom) also.
REASONS TO BE BEARISH
Technical - Below the purple bear channel and not showing signs yet of being an 'exponential' candidate.
Technical - Stop loss will be 140p at the prior low - representing a 12.5% risk.
Technical - Only recently broke out of the pennant pattern. Could still reverse from here.
Fundamentals - Inflation is not usually too good for growth and banks, with costs increasing as well as profits from interest rates.
Fundamentals - With interest rates increasing you'd anticipate that defaults and leverage will unwind in other economies and wreak havoc. Perhaps Barclays have repaired their balance sheet in the last 15 years or perhaps the UK government will continue to backstop, but current market conditions don't make for pretty reading.
SUMMARY
Buying Barclays here seems like a no-brainer here. Significant dividends in a stagflationary environment cannot be ignored. Neither can we ignore a reasonably priced stock in 2022, as well as a successful backtest of multiple breakouts on our indicators/TA. Time to keep an eye on this one.
Barclays (USA: $BCS) Showing Bullish Divergence On The Daily! 🌅Barclays PLC, through its subsidiaries, provides various financial products and services in the United Kingdom, Europe, the Americas, Africa, the Middle East, and Asia. The company operates through Barclays UK and Barclays International divisions. It offers financial services, such as retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services. The company also engages in securities dealing activities; and issues credit cards. The company was formerly known as Barclays Bank Limited and changed its name to Barclays PLC in January 1985. Barclays PLC was founded in 1690 and is headquartered in London, the United Kingdom.
BARC 130s coming - good entry pointHistoric support at ~130-131, looks like we're in wave 5.
RSI below 30 on the Daily chart.
First target fib. lvl 50% (~175) and wave A will most likely take us to the peak of wave 4 making it a nice 30% trade.
Barclays Banking on a Move Higher? Barclays - Short Term - We look to Buy at 187.74 (stop at 177.66)
Preferred trade is to buy on dips. Previous support located at 190.00. Prices expected to stall near trend line support. Levels close to the 50% pullback level of 187.16 found buyers. The primary trend remains bullish.
Our profit targets will be 219.38 and 227.80
Resistance: 200.00 / 210.00 / 220.00
Support: 190.00 / 175.00 / 160.00
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BOOM 💥 Barclays bank after cyper attacks showing some recovery
I would like to buy now , but why don't we wait 200 and buy there some good lot size shares 👈✔✔✔
Enjoy smart money 💰 🤑💸
Follow, share , like 👍
$BARC Beginning of the end of the downtrend?Quarterly chart shows that the lows are in for $BARC in my opinion.
Would like to see a move to £3 - I am spot long.
