Points to watch: Barclays has
moved above its 55 day moving average (86.86) and its 200 day moving average (95.8).
The stock has moved above resistance at 93.75 (the 50% retracement of its
July-October decline) and at 94.63 (the 50% retracement of its February-October decline).
Pivotal resistance exists directly overhead at 97 (the 38% retracement of its
3/96-2/98 bull move). BCS was unable to break above this resistance point during a
November 1998 test. The 97 level acted as support during November 1997. The stock
must move above the 97 level for its 3 month rally to be confirmed as a new bullish move
up (until it does the stock's present rally can only be considered a bear market rally).
Technical indicators are generally bullish. Weekly MACD and daily CCI have
given buy signals. Weekly stochastics, RSI, and Money Flow are all in uptrends.
Buy BCS on a break above 97, placing a stop near Gann 4x1 angle support at 86.38.
[Note: if the stock fails to move
above 97, wait for a break below support at 86.38 before selling or shorting.
Consider the region between 83-97 a no-trade trading range]