The Barclays share price rebounded sharply in August 2021 after dropping to a multi-month low of 157p. The BARC stock jumped by almost 20% to the current level of 185.85p. It is still a few percentage points below the year-to-date high of 190p.
Barclays August review
Barclays is a large British bank that has operations in key countries like the United States and Canada. The bank operates its business in two key segments: the UK and international. Unlike Lloyds Bank and NatWest, the company has a large trading division that helped to cushion its losses at the height of the pandemic.
In August, Barclays shares rebounded as investors reflected on the strong bank earnings from key American banks like Morgan Stanley and Goldman Sachs. These banks reported strong earnings, providing further evidence that the industry is doing well.
In the same month, the company inked a deal to provide card services to Gap Inc. Gap is a leading retailer that owns thousands of stores globally. The deal, valued at more than $3.8 billion, saw the company buy a credit card portfolio from Syncrony Bank. The deal will close in 2021.
Credit cards will provide the firm with the fees it needs to offset earnings from low-interest rates. And in 2020, the firm acquired an AARP account from JP Morgan Chase. It also has deals with companies like JetBlue and American Airlines.
Barclays share price forecast
The four-hour chart shows several things about the Barclays share price. First, it has made a strong recovery from its lowest level in August. Second, the stock has moved above the 25-day and 50-day moving averages. Third, it has formed what looks like an inverted head and shoulders pattern, which is usually a bullish sign.
Fourth, the BARC share price appear to be forming a double-top pattern whose highest point is at 187.15p. Its neckline is at 176.88.
Therefore, while the outlook of the stock for September is bullish, we can’t rule out a situation where it drops to the support at 170p. This price is along the right shoulder and is slightly below the lower side of the double-top pattern.