Barclays Share Price Rises, Targets 170p As Share Buyback Commences

The Barclays share price is seeing some solid demand this Tuesday after the bank refiled its accounts and kickstarted its $1.3billion shares buyback program. Under the share repurchase program, Barclays will buy back 1,676.161,960 shares at a total cost of 1 billion pounds sterling. JP Morgan Securities has been appointed to handle the buyback scheme, which will last until 30 September.

The shares repurchase program was due much earlier, but issues with trades made on debt securities from its US division forced the company to suspend the program. The bank eventually had to refile its 20-F accounts to US regulators on Monday, paving the way for a resumption of the program.

This is news that investors have been waiting for, and it has given the Barclays share price a new lease of life. The stock is up 1.64% on Tuesday, extending the 3.29% gain made on Monday. Technically speaking, the advance also enables the Barclays share price to complete a key bullish reversal pattern on the daily chart, which sets up an opportunity for a further advance if the bulls can overcome immediate obstacles to this move.

Barclays Share Price Outlook

The recent upside moves on the stock continue the measured move following the neckline break and completion of the triple bottom pattern. The active daily candle is now challenging the resistance at the 161.62 price mark, the site of the previous high of 9 March 2022. A break above this level grants access to the 170.34 barrier (14/24 March 2022). Attainment of this price point completes the pattern’s measured move. Additional targets to the north are seen at the 177.34 price mark (17 March 2022) and the 186.14 resistance, where the highs of 11 August, 6 September and 16 December 2021 are found.

This outlook is negated if the bears can resist a further advance of the price action at 161.62. This action opens the door for a potential drop in price, targeting the 29 March/17 May highs at 156.92 initially, before the 29 March/19 May lows at 151.12 enter the picture to make this point an additional southbound target. Finally, 147.48 (13 May low) comes into the mix on a further price deterioration before 140.80 becomes available.

Barclays: Daily Chart