Barclays ADRs (BCS) have been confined to a tight sideways trading of a dollar or less the past four months. With a very flat On-Balance-Volume (OBV) line and a neutral 50-day moving average we are not getting any clues right now on Barclays' next likely direction.
In this daily bar chart of BCS, below, we can see that shareholders had one wild ride in June. First prices declined about 20% in about a week and then soared rapidly to a slight new high. This new high did not hold for long and price gaped sharply lower. Buyers finally halted the decline around $7.00. BCS stabilized for about a week and then began a two-legged rally.
The first leg was up to early September and the second leg went from mid-October to early December. From December until now BCS is neutral -- a flat-lined On-Balance-Volume (OBV) and a Moving Average Convergence Divergence (MACD) oscillator that is hugging the zero line.
I have to say I am amazed at the flat On-Balance-Volume (OBV) line. I would have believed that there should have been some upward or downward bias, but not now. The 50-day average line is neutral, too.
In this weekly chart of BCS, below, we have a mixed picture. Prices are above the rising 40-week moving average line. The weekly OBV line is neutral to slightly bearish and the MACD oscillator is suggesting you take profits on longs.
Strategy: If BCS closes above $12 on stronger volume I would go long. There is no major nearby resistance until you reach $14. A close below $11.00 could precipitate some carryover price weakness to maybe $10.