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Barclays Share Price Tumble As Jefferies Afirms Buy Rating

The UK shares are once again facing headwinds as the September CPI data came slightly above expectations. The bearish sentiment in the market also impacted the Barclays share price, which fell 0.92% on Wednesday. In addition, shares of Nat West Group (NWG), Lloyds (LLOY) and HSBC Holdings (HSBA) also showed a similar price action.

Barclays shares are really struggling to break above their 200 daily moving average, which often acts as a dynamic resistance. However, the price action is also forming a pattern that can be considered a bull flag by some analysts. This pattern may come into play if the price breaks above 160p resistance.

Barclays plc is set to release its financial results for the quarter ending on 30th September next week. The negative price action before the quarterly results suggests that most investors are expecting the bank to report squeezed profits.

This thesis is further strengthened by the recent remarks of Barclays CEO C.S. Venkatakrishn on Bloomberg’s podcast. In the podcast named ‘In The City’, the CEO cited stagnant deal activity and the peaking interest rates as the reasons behind squeezed profits for the banking sector.

In other news, Jefferies has trimmed its price target for Barclays share price but has affirmed its ‘buy’ rating for the stock. After the change, the revised target for the bank stock will be 300p from the previous 320p.

LON: BARC Technical Analysis

Analysis and forecast of Barclays share price
LON: BARC Technical Analysis

Barclays Share Price Forecast

For an accurate LON: BARC forecast, let’s analyze the chart on a higher timeframe. We can see that the stock is struggling to break above the 160p level. If you read my last Barlcyas share price analysis, I discussed the likelihood of a bigger drop to 141p which is the lowest point of the longterm trading range.

The next week’s earnings release may increase the volatility in the upcoming trading sessions. The recent rejection of the FTSE 100 index from the 7,680 points level has given bears more confidence to short the bank shares.