We were asked by a trader today (like we often get asked with respect to Banking Stocks) where a good place to buy Barclays would be? For those looking at this after the event let me briefly set the scene:
Barclays topped out just shy of £8 in February 2007. Last week we hit 47p, and have since bounced, failing at 117.50 yesterday (28th January). Interestingly, this was the low/bounce back in November, so we have seen an old support level turning into resistance, something us Technical Analysts always look out for, and place importance upon.
All the way down we have been asked if it is a good time to buy banks, and all the way down we’ve said “No”.
Our clients who have access to all of the media appearances and magazine articles featuring our Analysts will be well versed with our thinking, and our standard response to these sort of questions, but the reply I crafted to today’s chap caused a bit of a chuckle around the office, as well as clearly illustrating our thoughts on this question.
So I thought I’d share it with you! Here it is:
1p is the only safe place to buy BARC!!!
Yesterday’s failure at old support at 117.50 is a clear signal that the road to higher prices is going to be a tough one in this stock.
Failing to hold £1 today is bad news, surely?!
85p-88p might act as support.
This isn’t catching a falling knife, it’s catching a falling FRIDGE.
You don’t need Technical Analysis for this sort of trade; just jump in and cross your fingers…
Casinos give you free tea/coffee/lemonade, and in Las Vegas you can even get free beer… much more fun than “trading” Barclays.
Good luck today with whatever you decide to do, be it in the markets or down the Casino!!
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