Barclays Share Price Drops Despite Profits Beating Expectations

Summary:
• Barclays Share Price Forecast: Despite posting a 27% increase in quarterly net profits, LON: BARC is down 2.02% today.

Barclays (LON: BARC) share price appears to be in a consolidation phase after the bank posted a 27% increase in net profit. The earnings report, which was released on April 27, showed that the Q1 financials of the British financial giant beat analyst expectations. On the announcement day, the shares closed with 5.32% gains.

However, Barclays shares opened lower today and experienced a very volatile session. Till press time, the stock was down 1.83% after failing to break above a key resistance on the daily chart. The benchmark FTSE 100 index also dropped by 36 points as the shares of other major banks also experienced a sell-off.

Barclays Reports £1.78 Billion Net Profit

In the first quarter of 2023, Barclays posted a net profit of £1.78 billion. This was a 27% increase on a YoY basis which beat the analyst expectations of £1.432 billion. The income from the lender’s consumer cards and payments division also increased by 47%. Barclays UK’s income also saw a massive increase of 19%.

The high interest rates in the UK were the primary reason behind the increase in the net interest income. Barclays CEO C. S. Venkatakrishnan called the latest financial results ‘strong’, which would allow the bank to provide better services to its clients in an era of economic turbulence.

Barclays Share Price Fails To Break Above 160p

As mentioned in our last LON: BARC analysis, the shares failed to break above 160p once again. I predicted this move precisely, anticipating a sell-off after the earnings report. There are multiple confluences that make this region a huge resistance on the daily chart. Only a reclaim of this level can make Barclays share price forecast bullish.

The significance of the 160p level comes from the confluence of the 200-day moving average and the range mid. Such levels are often very hard to break in the first attempt. The following chart shows that the price is still trading very close to this level. If this level isn’t reclaimed soon, then there is a possibility of a much bigger drop till 142p.

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