Is Barclays a buy? The answer is…No, at least Not Yet.
Is Barclays a Hold? Well, Yes - but only if you can stand the strain.
This is what the technical analysis is showing us –
Weekly Chart – 
(Click on the charts to enlarge)
There is the triple-top resistance at the 390p level which is acting as the top of a developing trading range between 390p and a low of 260p (from which level the price has just recently bounced).
The stock is still in Uptrend – but only just – and only because of the steep rise from March to May ’09 so the potential for higher prices is very muted. The price is now back at the same level as at the May’09 end of the bull run at c.300p.
At the moment the price looks to be falling back for another test of support at the 260p level area.
Daily Chart –
So, Barclays is not a buy just now but could be a potentially profitable buy in one of two events –
1. If it falls to, and makes a bottom on or above, the 260p level. A rise back up to the 390p top of the trading range is then likely. Or
2. If it breaks out above 328p because it is then likely to run up in order to test the resistance at the 390p level.
As a ‘hold’ there is cause for hope (of limited recovery) if a new low is created on or above the 260p level but if the price breaks down below this level then the price will be likely to fall to the 180p area and it will be a question of whether or not you could stand the strain that would engender.
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