Barclays Share Price Forecast for November 2021

Summary:
• Barclays share price had a good October as its stock surged to the highest level since 2018. The BARC stock has rallied

Barclays share price had a good October as its stock surged to the highest level since 2018. The BARC stock has rallied by more than 180% from its lowest level in 2020, making it one of the best performing banking stocks. It has even rallied in the past seven consecutive weeks. 

Jes Staley to step down

Barclays share price reacted to several key events in October. First, the stock rallied after the company announced strong quarterly results. The performance was mostly driven by the bank’s wealth management and investment banking division. This was in line with how major banks like Goldman Sachs and Morgan Stanley did. 

The stock also rallied after more signs emerged that more central banks will soon turn hawkish. In the UK, there are signs that the Bank of England (BOE) will turn relatively hawkish considering that inflation has risen while the unemployment rate has retreated. The bank will conclude its November meeting this week. Other central banks like the Federal Reserve and the European Central Bank (ECB) are also expected to turn hawkish. 

Barclays stock price also rallied because of the overall strength of the global banking industry. In the past few months, banks have emerged as the best performing sectors of the market. 

The stock declined sharply today after the bank’s CEO resigned. Jes Staley was forced out of the company because of his relationship with the disgraced financier, Jeffrey Epstein. He will be replaced by C.S Venkatakrishnan. In a statement, the company said:

“In view of those conclusions, and Mr. Staley’s intention to contest them, the Board and Mr. Staley have agreed that he will step down from his role as Group Chief Executive and as a director of Barclays.”

Barclays share price forecast 

The four-hour chart shows that the month did not start well for Barclays shares as they crashed below 200p. This decline brought it to the lowest level since October 14th. At the same time, the stock managed to move below the 25-day and 50-day moving averages while the MACD has formed a bearish divergence pattern. 

Therefore, in my view, I suspect that the stock will bounce back in the coming days and possibly rise above the year-to-date high of more than 203p. However, a decline below 190p will invalidate the bullish view.