Barclays Share Price Inches Higher, Set to Hit 173p

The Barclays share price is on its way to recovering the recent highs posted last week after notching a 1.62% gain as of writing in Tuesday’s London trading session. The day’s uptick takes the price above the peak of Friday’s candle, which had closed 4.49% higher.

InvestingCube's S&R Levels

FTSE100

FTSE100 (7031)

In Profit

STOP

SELL

TP1

7146

TP2

7127

One of the triggers for the stock’s gains is the expectation of an additional rate hike by the Bank of England in its 15 September meeting. With UK inflation predicted to inch higher and worsen the cost-of-living crisis, the UK’s apex bank may be forced to act to stop the rot. 

Barclays recently divested from its South African operations after selling its 7.4% stake in Absa for 538 million pounds. This represents a loss of 31 million pounds on the said stake. This divestment aligns with its 2016 vision of focusing more of its operations in the US and British markets. This move coincided with Barclays’ share price finding support at the 161p mark, following a slight correction from the rebound move that kicked off on 29 July.

Barclays Share Price Outlook

The active daily candle needs to close at the current price or higher to fulfil the 3% penetration close filter for the break of the 167.86 (8 June and 11 August lows/30 August high). This would clear the pathway for the bulls to target the 173.60 resistance formed by the 30 May and 17 August highs. Additional targets to the north are 177.34 (17 March 2022 high) and 186.14 (16 December 2021 high). These become harvest points if the bulls have unopposed action at the 173.60 barrier. 

Conversely, failure to maintain the 3% penetration close filter puts the 167.86 price mark under pressure. If it gives way, the coast will be clear for the bears to aim for the 161.62 support (5 August and 30 August lows). Further price deterioration makes the 156.92 support level (10 March and 29 June lows) available as a harvest point for the bears. If the bulls fail to defend this support, 151.12 (19 May and 18 July lows) and 147.48 (13 May and 12 July lows) will become additional price targets to the south. 

Barclays: Daily Chart