The Barclays share price rally is accelerating after some positive statements by Andrew Bailey, the Bank of England (BOE) governor. The BARC shares are trading at 180p, which is 145% above the lowest level in 2020.
What happened: Barclays is having a good year as its shares have rallied by more than 25% this year. They are trading at the highest level since February last year. This performance is mostly because there are signs that its business is doing well.
For example, in the UK, the government is ramping-up its vaccination program and is aiming to vaccinate all people in the next few months. This will lead to more growth, which will be a positive thing for the economy. In a statement today, Bailey reiterated that he expects the rate of inflation will rise to 2% in the near term. For Barclays, this removes the risk of negative rates.
Second, the Barclays share price has risen because of the rising volatility in global equities. This is a good thing considering that the bank makes a substantial amount of money from its Fixed Income Commodities and Currencies (FICC) Business.
The four-hour chart shows that the Barclays share price has been in a strong upward trend lately. The shares have formed an ascending channel and is currently attempting to move to the upper side of this channel. It is also being supported by the 25-day and 15-day exponential moving averages (EMA).
Therefore, in my view, I suspect that the BARC share price will continue to rise as bulls target the upper side of the channel at 185p. However, a drop below 175p will invalidate this trend.
