The Barclays share price fell in Thursday trading after the bank suspended trading in two exchange-traded notes linked to oil and volatility. The bank said it decided to stop trading in those two assets due to capacity constraints. However, it also denied that the decision was linked to the Russia-Ukraine crisis and that it would restore trading as soon as it had extra capacity to take on more positions.
It has since emerged that the Ambrus Group had deep out-of-the-money call options betting on volatility-tracking ETNs that were set up soon after Thanksgiving in 2021. The two ETNs (iPath Beta Crude Oil and iPath Series B S&P 400 VIX Short-Term Futures) carry a combined value of $1 billion.
The firm confirms that its positions are well into double-digit gains, and the shares continued to rise after Barclays’ decision. The bank’s shares had soared 5% on Monday, extending these gains on Tuesday and Wednesday before Wednesday’s pullback. The Barclays share price is down 2.56% as of writing.
The intraday decline has set up a bearish engulfing candlestick pattern, with the price candle testing support at the 170.34 price mark. The bears need an outside day bearish candle, which breaks down the 170.34 support to confirm the engulfing pattern, setting up a run to the 161.62 support. 155.04 and 147.48 are other southbound targets that become viable if 161.62 (21 July 2021 low).
On the other hand, a break above 177.34, which could come from a strong bounce off 170.34, triggers a continuation of the recovery move. This will set the bulls’ path towards 186.14, with 190.34 (29 March-20 April 2021 highs) and 200.00 (14-16 February highs) serving as other northbound targets.
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This post was last modified on Mar 17, 2022, 17:35 GMT 17:35