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Sell in May – P8 – Barclays
Barclays (BARC)
Source: CMC Markets, Date: 02.05.2018
Barclays is a major banking institution and a staple of the UK financial system (another Top 20 UK 100 contributor by percentage weighting and a Top 50 by market capitalisation).
Despite its long and storied history on the London Stock Exchange, its performance record during the summer Target Period has been less than stellar. During the twenty-four years examined in this dataset (1994-2017), Barclays share price has declined in half of the summertime periods, with an average share price loss of 2.7% . Its largest summer decline has been recorded in 2011 (-49%), while the biggest gain was in 2009 (+31.5%).
Despite its share price inconsistency during the summer period, Barclays share price has been steadily rising since November 2017, though its 2018 year-to-date performance has been more muted (+0.8%). Currently Barclays is off its 220p highs of the year, trading between support at 205p and resistance at 217p.
The question for investors is whether Barclays shares will deliver a bullish breakout, or will the share price repeat last summer’s drop (-11% during target summer period) and fall out of the rising channel?
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Prepared by Michael van Dulken, Head of Research
