Barclays share price opened with an up gap in today’s trading session, and the company is up by 2 percent at press time. The share price recovery comes after the company released its second quarter results, which showed that its profits had slumped after a costly trading error in the US.
Earlier this year, the company had announced that it had sold $15.2 billion more in US investment products known as structured notes. The mistake resulted in a £1.3 billion litigation and conduct charges. These losses were substantially offset in the second quarter, resulting in the current profit declines.
Despite these losses, the company still reported a profit of £1.071 billion ($1.30 billion). However, compared to the previous year, this was a 48 percent decline. The huge error did not go unnoticed by investors in the market. Following the readings and revelations of the mistakes and second quarter results, the company dropped by over 4 percent on July 28.
Despite the drop on Thursday, the company seems to have started a recovery. On Friday, we saw the prices surge by over 4 percent and wipe out the losses made the previous day. Fast forward to today, the bullish surge is set to continue, with prices already up by over 2 percent.
The share price is also looking aggressively bullish and there is a high likelihood that we will see prices continuing to rise throughout the session. Therefore, my Barclays share price prediction expects the prices to continue going up.
There is a high likelihood that in the long-term, the Barclays share price will be trading above the 173p price level. I also expect the prices to continue rising and trade close to the 200p price level. However, should the prices reverse and trade below Thursday’s price low of 149, then my analysis will be invalidated.
This post was last modified on %s = human-readable time difference 14:09