Barclays trade idea: How to play the short term trend decelerating higher

Part 1) introduction

VolatilityMarkets suggests trend-inspired trades that capitalize on market trends.

In the short term Barclays has been decelerating higher. In the long term Barclays has been accelerating higher. With the short term trend being the stronger of the two, we propose a long trade idea with a one week time horizon.

Part 2) trade idea details

Buy $ 20,516 USD of Barclays, take profit at $ 7.488 level with 50.0% odds for a $ 999 USD gain, stop out at $ 6.792 with 50.0% odds for a $ 1,000 USD loss through 1w time horizon

Part 3) BCS trend analysis

BCS last price was $ 7.14. The short term trend decelerating higher is stronger than the long term trend accelerating higher. This trade goes long when the last change was higher but decelerating.

Part 4) BCS value analysis

Over the past 21 days, the BCS price increased 12 days and decreased 9 days. For every up day, there were 0.75 down days. The average return on days where the price increased is 2.8274% The average return on days where the price decreased is -2.5804% Over the past 21 Days, the price has increased by 10.02% percent. Over the past 21 days, the average return per day has been 0.4771% percent.

Part 5) BCS worst/best case scenario analysis

Within 1 week, our worst case scenario where we are 95% certain that this level won't trade for BCS, is $ 6.0662 , and the best case scenario overnight is $ 8.2138 . levels outside of this range are unlikely, but still possible, to trade. We are 50% confident that $ 6.792 could trade and that $ 7.488 could trade. These levels are within statistical probability.

Key Takeaways:

• Price today $ 7.14

• Over the past 21 days, the BCS price increased 12 days and decreased 9 Days.

• For every up day, there were 0.75 down days.

• The average return on days where the price increased is 2.8274%.

• The average return on days where the price decreased is -2.5804%.

• Over the past 21 Days, the price has increased by 10.02% percent.

• Over the past 21 days, the average return per day has been 0.4771% percent.

• Over the past 21 days, The price has on average been accelerating: $ 0.0095 per day higher.

• Over the last session, the price increased by $ 0.22.

• Over the last session, the price increased by 3.0812 %.

• Over the last session, the price decelerated by $ -0.01.