Barclays (BCS) rallied this month to break its June high turning both the 50-day moving average line and the 200-day moving average line higher. Looking at the charts and indicators, it looks like BCS can build on those gains in 2017.
In this daily chart of BCS, above, we can see a bullish golden cross of the 50-day and 200-day moving averages in mid-November. After making a low in late June and a quick retest in early July, BCS made a small consolidation pattern from August through late October.
The daily On-Balance-Volume (OBV) line was flat or neutral until early November, when it turned upward with the price action. A rising OBV line suggests that buyers have become more aggressive, buying more shares of BCS even when it traded up on the day.
In this three-year weekly chart of BCS, above, we can see both the decline from $18 to under $7 and the subsequent recovery. Our indicators are mixed, but could improve further in the weeks ahead.
BCS is above the rising 40-week moving average line. The weekly OBV line has only shown limited improvement or buying enthusiasm. The weekly Moving Average Convergence Divergence (MACD) oscillator crossed to an outright go long signal at the end of November.
Strategy -- traders could look to buy weakness towards $10.50 if available; otherwise, go long on a new high close above $12.