The Barclays share price is trading sharply lower this Wednesday ahead of tomorrow’s Bank of England interest rate decision. The BoE is expected to raise interest rates in the UK by 50 basis points, and this seems to have limited any further downside on the pair after sellers had come into the fray to drive the Barclays share price down by 2.10%.
InvestingCube's S&R Levels
Not in Sell Zone
It would appear some bargain hunting is now coming into the market activity around the stock as the bank has announced it is close to concluding a share buyback program following the issuance of billions of dollars worth of structured notes registered with US regulators.
This trading error, which occurred earlier in the year, had cost billions of dollars in losses. While the amount of money lost by that trading error in the bank’s bond-trading desk remains unknown, the company has filed a rescission offer worth $7.7 billion in securities. Investors have submitted claims regarding this.
From the technical analysis standpoint, the trendline that connects the 15/28 July lows appears to be holding after the intraday bounce. This bounce is also expected to preserve the integrity of the 167.86 support level if it holds, setting up the potential for an attack on the 173.60 key resistance that has capped the Barclays share price since late March 2022.
Barclays Share Price Forecast
The intraday violation of the 167.86 support level has met an obstacle at the ascending trendline. A breakdown of this trendline targets the 161.62 support (30 August low and neckline of rounding bottom of June 2022). If the bulls fail to defend this support, 156.92 becomes a new target to the south. 151.12 and 147.28 (12 July low) are additional downside targets.
On the flip side, a bounce on the ascending trendline, which keeps the candle above the 167.86 support, could open the door for a push toward the 173.60 price mark (23 March and 17 August highs). An extension of the price move above this level brings in the 17 March 2022 high at 177.34. The 22 December 2021 high ay 186.14 constitutes another upside target, while 190.34 (17 February low and 25 February 2022 high) lines up as an additional target to the north.