The Barclays share price will be in the spotlight today as investors focus on some of the biggest prime brokers in the world. The BARC stock ended last week at 182p, slightly below the year-to-date high of 185.50p.
What happened: Barclays is one of the biggest prime brokers in the world. The firm provides services like OTC clearing and futures and foreign exchange prime brokerage services. Today, these firms are under pressure as investors focus on the liquidation of Archegos, an American hedge fund.
Earlier today, Nomura and Credit Suisse said that they would lose billions of dollars from the crisis. This pushed the Nomura share price lower by 16%, wiping out $3.2 billion of value. Other banks like Goldman Sachs and Deutsche Bank could also be affected. While Barclays has not been named in the crisis, there is a possibility that its stock could be affected.
The Barclays share price has done well this year. It has risen by more than 32% this year, outperforming other London banks. On the four-hour chart, the shares seems to have formed a major top pattern. It is along the 25-day and 15-day exponential moving averages (EMA) while the Average True Range (ATR) has continued to decline.
Therefore, while the shares may keep rising, there is a also a possibility of a major pullback in the near term. If it happens, the next key support to watch will be 170p.
