Although Barclays' name has been dragged through the mud over the Libor scandal, its chart pattern is gradually improving, says Nathan Eisenberg at www.jnfcfds.com.
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In particular, its 8.7 per cent rally on Friday 27 July confirmed a 'clustered island' reversal pattern. This formation signifies a reversal of trend, in this case from down to up. The rally was also backed up by high volumes. The next big resistance level is at 180p, allowing some room for the stock to run. Buy tentatively, placing a stop at 150p.
