This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.
The US and China have agreed to reduce tariffs on each other’s goods for 90 days.
When the announcement broke, the US stock market flew by at least 3%. Did you rejoice?
I rejoiced, knowing that we would experience less volatility in the markets and that the world would enjoy products made from everywhere in the world.
With this major breakthrough, what can we expect in the next few weeks or months?
I think that stocks could continue to be bullish for some time and this could be a wonderful opportunity to buy some for a position trade.
Which stock do you have your sights on?
I have mine on Barclays.
Brief History of Barclays
Source: home.barclays
Barclays is a storied financial company founded over 400 years ago in 1690.
In its early years, it grew through acquisitions of small English banks. It didn’t stop there.
Soon after, it acquired an Indian exchange bank, expanding its reach.
Barclays has shown to be innovative and highly adaptive. It had entered the credit and debit card, commercial credit, and investment businesses.
With its long history and achievements, is its financials strong and healthy?
Business Model and Financials
Source: tradingview.com
Let’s look at 2 key metrics from the image above – total revenue (in blue) and net income (in purple).
Did you notice that the total revenue of Barclays from 2018 to 2021 held steady at around $37b?
Things improved in 2022 onwards, bringing its total revenue to $45b, then $63.8b in 2023, and $70.5b in 2024! This huge increase in its total revenue in consecutive years is pleasing.
Has its net income managed to grow alongside?
Its net income was more inconsistent, growing and shrinking quite dramatically from 2018 to 2024.
One positive you can take away from its net income is that Barclays has not suffered losses throughout.
Is this a strong enough reason to buy its shares for a position trade?
It would be better to analyze its share price.
Technical Analysis on Barclays (NYSE: BCS)
Here’s the chart of Barclays’ shares.
Can you tell that its shares are in a super strong uptrend?
There’s no need to add a moving average or trendline. You can tell that this is an uptrend by comparing the number of blue (outline and solid) candles against those in red (outline and solid).
The share price is in an uptrend when there are more blue candles.
What would you want to do when a stock is in an uptrend?
You’ll want to look out for buying opportunities. And that’s what I’ll be doing here.
Without the need to plot support and resistance, I can tell whether the time to buy the shares of Barclays is ripe for a position trade.
How?
By looking at the 2 main proprietary indicators – the arrow and Trend Impulse Factor indicator.
Do you see a green arrow under the latest candle of Barclays’ shares?
This tells me that this is a fresh bullish move.
But is this bullish move likely to be sustained?
Enter the Trend Impulse Factor indicator.
When the bar of the Trend Impulse Factor indicator is dark green in color, it suggests that this bullish move is likely to be sustained. Now, let’s have a look at the color of the Trend Impulse Factor indicator’s bar.
I like what I see!
Because of the presence of the green arrow and dark green bar of the Trend Impulse Factor indicator, the time to buy the Barclays’ shares for a position trade is here!
Conclusion
Source: unsplash.com
The US stock market is on a tear. It was further stoked by the trade deal struck between China and the US over the weekend.
As this happens, are there still buying opportunities for a position trade?
With the use of the scanner that comes with the TradersGPS (TGPS) system, I’ve found a gem – Barclays.
This company is solid, and the market participants are highly optimistic of its shares.
Both the arrow and Trend Impulse Factor indicators have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is ripe for a position trade. You won’t have to feel in the dark and make wild guesses.
Relying on the green arrow and the color of its Trend Impulse Factor indicator, I can tell that its shares are ripe for a position trade.
What are your thoughts?
Share your thoughts with me below!
