Barclays (LON: BARC) share price is having a great month after a panic-induced sell-off in March. The shares are already 4% up this month and nearly 18% up from their March lows. This signifies a massive rebound in the stock, which tanked due to the banking crisis in the US. Shares of other UK banks are also up significantly from their last month’s lows.
Shares of global banks are currently in the midst of recovery as the banking concerns for many investors still persist. On Thursday, UK bank shares rallied as the benchmark FTSE 100 gained 80 points. Barclays shares also showed a very positive price action and gained 2.64% during the last trading session before Easter.
Barclays Strategist Predicts More Outflows
The reason behind the collapse of Silicon Valley Bank (SVB) in the US was the massive increase in outflows. The bank had to sell its T-bills for a loss to meet the growing withdrawals. More recently, Barclays strategist Joe Abate has stated that another wave of deposit outflows could be on the cards. This may affect Barclays share price in the coming months.
According to Joe, the high rates in the money market mutual funds might make many investors withdraw their funds from the banks. Furthermore, the recent share disposal of 1.1 million shares from the Barclays Group CEO & Executive Director is also a concern for many shareholders.
Barclays Share Price May Hit 160p Soon
Performing technical analysis on the LON: BARC chart gives us a possible target for the current price rally. The following chart reveals the key levels of support and resistance that the share can tag in the coming days. The next major level to watch will be the $160p level which is the midpoint of the accumulation range. I expect the price to retest this level in the coming days.
There is also a possibility of another retest of the range lows at 142.80p before the price moves further up. As long as this level holds, my Barclays share price forecast will remain positive for the coming weeks. For an updated analysis and my personal outlook on shares and cryptocurrencies, you can also join my free Telegram group.
