Chart of the week: Barclays and Lloyds Bank shares

TL;DR

John Burford discusses Barclays and highlights the distinction between inflation and deflation in the current market.

Transcript

hello it's John Burford with chart of the week for Monday the 18th of May and this week I'm covering Barclays but it's a it's a catalyst actually for me to discuss inflation and deflation those concepts they're actually misunderstood by quite a lot of people out there especially professionals anyway I'll get to that in a moment this is this is Barc... Read More

Key Insights

• 😘 Barclays poised for a potential plunge into new lows in wave 5.
• 🛀 Lloyds Bank showing weaker performance compared to Barclays.
• 💪 Wells Fargo indicating a strong relief rally but likely to see another move lower.
• 🛢️ The correlation between the Dow and crude oil trend similarities.
• ❓ John Burford's belief in the current period of deflation in the market.
• 🎚️ Analysis of the credit levels and borrowing trends in relation to inflation and deflation.
• 🛢️ The impact of negative crude oil prices on the market.

Questions & Answers

Q: What is John Burford's analysis of Barclays and its potential movement in wave 5?

John Burford anticipates a plunge into fresh lows in wave 5 for Barclays after a relief rally in wave 4, contained within a wedge pattern.

Q: How does the performance of Lloyds Bank compare to Barclays in John Burford's analysis?

Lloyds Bank shows weaker performance than Barclays, breaking below a wedge line and heading towards wave 5, with a possible target of around 22 pence.

Q: What does John Burford suggest about Wells Fargo's chart pattern and market outlook?

Wells Fargo reflects a strong relief rally but may see another move lower, like the UK banks, indicating a period of deflation in the market.

Q: How does John Burford distinguish between inflation and deflation in the current market scenario?

John Burford explains that the market is currently in a period of deflation, characterized by a reduction in borrowing and lending activity, reflected in credit levels and overall market trends.

Summary & Key Takeaways

• John Burford analyzes Barclays and predicts a potential plunge into new lows in wave 5.

• A comparison with Lloyds shows weaker performance, heading towards wave 5 as well.

• Wells Fargo's chart reflects a strong relief rally but might see another move lower, indicating a period of deflation.