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Tuesday, February 11, 2014

Annual Trading Forecast on Barclays (2014)

Barclays stock (LSE:BARC) is not an attractive market right now, but it may go northward this year.

4 EMAs – 10, 20 50 and 200 are used in the chart. The color that stands for each EMA is shown at the top left part of the chart.  The bullish effort that happened in January 2014 was rejected and the price plummeted. Right now, the price is making a renewed effort to go upward and recover its latest losses. The EMA 200 has been tested and it could be breached to the upside. When this ‘Golden Cross’ is accomplished, the other EMAs would align themselves to support the bullish effort. The demand zone at 260 should serve as a barrier to any serious southward attempts.

Conclusion: Eventually, Barclays stock could reach the supply zones at 300 and 400 this year. One way to make more gains in the market is to follow the line of the least resistance. That is why it pays to look for the direction favored by the market. Once found, one need not bother about the reasons behind the dominant bias, for a market cannot trend strongly in a direction without a good reason. This remains the most crucial thing to do: looking for high probability trades that give you a huge edge. Then you can manage your positions as you lock in more profits.

This forecast is ended with the quote below:

“Winning traders have high levels of risk tolerance. If you have trouble taking risks, you'll have trouble trading the choppy, volatile markets in the short term.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders



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