Barclays (LON: BARC) share price has started this week with a strong bounce. The bounce comes after the price dropped to fresh monthly lows. Our analysis reveals that the ongoing bounce may turn out to be a dead cat bounce as the shares have formed a lower low on the daily timeframe.
On Monday, shares of major British banks showed a very positive price action as the FTSE 100 index gained 91 points. Barclays shares rose by 3.37% during the first few hours of trading. HSBC, NatWest Group, and Lloyds shares were also up on the first trading session of the week.
Barclays Bank Teams Up With TransferMate
As per the most recent Barclays news, the bank has partnered with the global payments infrastructure provider, TransferMate. The partnership will enable Barclays clients to receive payments in 60+ currencies into their GBP accounts. The feature may turn out to be very handy for small to medium-scale businesses.
The evolving banking crisis in the US has also affected the Barclays share price. In less than two months, three major US banks have succumbed to the declining deposits. This has triggered a wave of fear among the depositors of British banks as well. However, any British bank is yet to see a fate similar to the collapsed US banks.
Barclays Share Price May Drop 7% From Here
A look at the LON: BARC chart depicts that the shares have made a lower low on the daily timeframe. This confirms the breakdown of the bullish market structure. In the coming days, the stock may retest the range low of 142p, which is also a major support.
For the Barclays share price forecast to flip bullish, the price needs to break above the 161p level. This level comes into play due to the confluence of 200 MA and the range mid. Till then, it is better to wait before entering into any long-term position.
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