Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make the Barclays share price more attractive?

• The chart shows the Barclays share price movements since 2013.
• Shares -22% from 2018 highs; +2% from 2018 lows; -14.5% year-to date
• Berenberg upgraded Barclays to Buy (from Hold), and upped its target to 220p (from 200p).
• Consensus summary: 14 Buys, 9 Holds, 3 Sell; Average target: 220p (Source: Bloomberg).
• Current share price 173.6p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards Aug 196p highs?

Click to enlarge

Trading Barclays – An Example

Let’s say you think that Barclays shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Barclays using a CFD, at the current price of 173.6p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Barclays share price rises to 196p (+12.9%). Your profit would be £1290 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Barclays shares continue their downtrend, they fall 3% and hit your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.