Barclays Share Price Targets 8% Upside After Breakout
Barclays (LON: BARC) share price has been gaining strength for the past few weeks. The shares have bounced off strongly from their June lows and now appear to be targeting the yearly highs. The latest analysis reveals that there is a potential 8% upside for the stock.
The FTSE 100 index has been rallying for the past two weeks. The index plunged below its 7,300 support at the start of July 2023 but has shown a strong recovery since then. This has led to positive sentiment in the UK stock market. After a 0.67% rise on Monday, Barclays shares were trading 0.15% lower on Tuesday.
Why Is LON: BARC Rising?
There are multiple reasons behind the recent strength in Barclays stock. The bank posted strong profits in its Q1 earnings report. The higher interest rates in the UK have boosted the profits of all the banks operating in the country. Furthermore, a significant decrease in inflation has also improved the liquidity conditions of the stock market.
According to the latest Barclays news, the investment giant has hired Scott Schulte as its new head of the U.S. investment-grade debt syndicate desk. Another reason behind the rising Barclays share price is the anticipation of strong profit numbers in the bank’s upcoming earnings report. The report will be released on July 27.
Barclays Share Price Forecast August 2023
If we ignore the effect of the upcoming earnings report, LON: BARC chart is looking very bullish. The shares have broken above their May highs and are now trading at the highest level since March 10. This signals a strong demand in the market for bank shares.
Currently, Barclays share price forecast is looking fairly bullish. In case of a positive earnings report, I expect the shares to retest 178p soon. This will also mark a retest if the range highs. The future price action would then be dependent on the stock’s ability to break out of the current trading range.
In the meantime, I’ll keep sharing updated Barclays stock forecast and my personal trades on my Twitter, where you are welcome to follow me.