The Barclays share price will be in the spotlight on Monday ahead of the important US bank earnings. The BARC stock ended last week at 173p, which was about 25% above the lowest level this year.
Barclays news. Barclays is a large FTSE 100 bank that operates globally. The bank operates in two segments, international and UK. The UK business involves consumer and business lending while the international business also includes its Fixed Income Currency and Commodity (FICC) business.
Therefore, the bank will be in focus this week as large American banks like JP Morgan, Goldman Sachs, Citigroup, and Wells Fargo will release their earnings. These reports are important for Barclays because of its trading business. Their performance will provide a signal of how Barclays did. In general, analysts expect that this division struggled this quarter as volatility in equities and currencies declined.
Precisely, the median estimate is that the FICC revenue dropped by 28% in the quarter. Another key item to watch will be loan growth, which is expected to start cooling down. Additionally, the Barclays share price will react to the latest UK inflation data, which will send signals as to whether the Bank of England (BOE) will turn hawkish in its upcoming decision.
The daily chart shows that the BARC share price popped last week and then retreated sharply. It ended the week at 173p, which was slightly above the lower support line at 170p. The stock was also below the 25-day and 50-day exponential moving averages (EMA). It was also below the important resistance at 190p.
Therefore, in my view, the stock will remain in the current range later this week. Any move below the support at 170p will signify that bears have prevailed and will push the stock to the next support at 160p. On the other hand, strong results by US banks will likely push the stock to the resistance at 190p.
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