Barclays Share Price is Ripe for a Bullish Breakout – Chart
Barclays share priceis bouncing back today as part of the general rally in UK banks. The stock is up by more than 4% becoming the third-best performing company in the FTSE 100 after HSBC Holdings and Standard Chartered. Other banks like NatWest and Lloyds are also up sharply today.
Why is Barclays stock rising: Barclays and UK banks are rising sharply today after a horror start of the year. Most of them dropped in the first two trading days this week. Therefore, today’s rally is partly because of the rotation to an industry many investors believe is undervalued.
Still, Barclays is still facing many challenges ahead. For one, its consumer business will face more challenges as the country goes through the current lockdown. Also, its business in the United States could go through a difficult time now that it seems like Joe Biden will get support from congress.
Positives: Barclays share price has several positives. For one, it is still 20% below the highest point last year. This makes it relatively cheaper to invest in. Also, the bank’s trading business could continue doing well like it did last year. Most importantly, its UK business will likely benefit from the strong lending growth.
BARC share price technical outlook
On the daily chart, we see that Barclays share price has been moving sideways recently. Indeed, it has formed an horizontal channel that is shown in purple. Today, the price has moved along the upper side of this channel. It is also slightly above the 25-day and 50-day moving averages and the 61.8% Fibonacci retracement level.
Therefore, Barclays share price will possibly continue soaring if it moves above the current resistance. If it does that, the next level to watch will be the 78.6% retracement at 166p.