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Barclays (BARC) At Two Week Lows Ahead of Earnings Report

Barclays is under selling pressure for the third straight day ahead of the release of the second-quarter earnings report on July 29. Barclays said its half-year results would reflect challenging income and impairments in its consumer and corporate business, but strength in its markets income despite the coronavirus lockdown.

The bank told investors the previous week that the regulatory changes boosted its core capital, giving the bank a bigger buffer to absorb further loan losses during the COVID-19 pandemic.

Barclays now expects a CET1 capital ratio at 14% in the second quarter, up from 13.1% in the first quarter and above of market consensus.
Barclays reported a net profit of £605 million in the first quarter, down from £1.04 billion the previous year. The pre-tax profit was £913 million, from $1.48 billion in the 1Q of 2019. Group income rose by 20% to £6.3 billion.
Barclays has suspended the divided for the rest of the year as per the Bank of England decision.

Barclays Daily Technical Analysis

Barclays is 1.11% lower at 112.34, making fresh two week lows, and trading below the 50-day SMA for the second day giving the upper hand to sellers. The pressure might accelerate now, and lower levels are on the cards at least for the short term. 

On the downside, immediate support for Barclays share is at 111.86 the daily low. In case of a break lower then the next support stands at 107.29 the 100-day moving average. Next support area stands at 106.56 the low from May 26.  

On the flip side, the initial resistance will be met at 116.53 the 50-day moving average. The next obstacle for Barclay’s share to the upside stands at 118.28 the high from July 23 trading session. Next supply zone stands at 121.42 the top from July 21. 

Barclays Daily Chart