Barclays (LON: BARC) share price appears to be gaining strength after a strong bounce from its 130p support level. Shares of major UK banks are currently in the midst of a recovery after the failure of multiple banks in the US and the issues with Credit Suisse. While the sentiment has improved significantly in the past few weeks, some investor concerns still persist.
On Monday, FTSE 100 Index turned green once again and gained 45 points. Till press time, the benchmark index was 0.6% up for the day. The bank shares gave mixed signals. While Barclays and NatWest Group showed positive price action, HSBC and Lloyds remained red.
After weeks of uncertainty, the banking fears appear to be settling down. Barclays share price UK is already up more than 15% from its March lows, and the price is gaining more strength. The next rate hike decisions from the US Federal Reserve and the Bank of England will be the major factors affecting the future prices of bank shares.
The collapse of the Silicon Valley Bank in the US shows that while the high-interest rates are increasing the operating profits of the banks, they are also devaluing their treasury bills. This is because these bills were acquired by the banks at a time of low-interest rates.
The banking saga in the US and Switzerland tanked LON: BARC price to its lowest level since November 2020. Nevertheless, the price has rebounded strongly and now trading 15% up from the lows. Technical analysis also shows that Barclays share price forecast of 160p can be realized pretty soon.
This level is the midpoint of the range in which Barclays shares have been trading for months. Since the price has reclaimed the range lows after briefly trading below it, the next target appears to be the range mid, which lies at 160p. The invalidation will be a daily close below 142p.
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This post was last modified on %s = human-readable time difference 13:48