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While Deutsche Bank AG (USA) (NYSE:DB) is certainly under fire amid the U.S. Justice Department’s housing-crisis probe, keep in mind that Credit Suisse Group AG (ADR) (NYSE:CS) and Barclays PLC (ADR) (NYSE:BCS) are in the same boat. The latter in particular has the albatross of the “Brexit” situation around its neck — and recently it’s been giving off some bearish signals.
Last Friday saw a gap down and cross below the 21-day moving average. Then, on Monday, Barclays stock completed a bearish Symmetrical Continuation Triangle…and, based on that, the Profit Scanner powered by Recognia expects 25%–30% further downside.
This particular pattern gets its name from its two converging trendlines, formed as the stock makes lower highs and higher lows. It continues to consolidate for a while — then, when shares break below the lower trendline, that’s a signal that they will continue their prior downtrend.
From here, Profit Scanner expects BCS to reach $6.00–$6.50 in about 12 weeks. Investors may want to carefully examine whether all the volatility is worth Barclays’ 4.3% dividend yield…and bears may look to take advantage with a short sale or some put options.
Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.