After trading at its lowest point since April 27, 2022, during the early hours of yesterday’s trading session, Barclays’ share price rose by 2 per cent to close the markets trading at 145p. Today, the aggressive bullish push looks poised to continue, with the company already up by 3 percent in the early hours of the trading session.
The current bullish push comes amidst rising concern about the state of the UK economy. However, steps being taken to address these concerns seems to be benefiting the banking industry and may be behind the recent Barclays price resurgence in the markets. For instance, the recent rate hikes by the Bank of England will have a massive impact on the banking industry’s bottom line.
However, the recent mini-mini budget by the Chancellor of the Exchequer, Kwasi Karteng, sparked a massive selloff in the UK bond market as investors became concerned about higher rates and a potential credit rating downgrade.
The Bank of England had to intervene in the bond market and add liquidity to prevent further economic turmoil. Although the mini-budget mishap looks to have spared the Barclays share price, it was a glimpse of what to expect, both in the short term and in the long term, as the UK continues to struggle with the rising cost of living and a new government.
During yesterday’s trading session, the Barclays share price dropped to its lowest level since April 27, 2022, and quickly recovered to close the markets with a market gain of less than a percentage point. Today, the bullish push looks to continue, with prices already up by 3 per cent. The bullish push also looks poised to continue throughout the session.
However, considering the current price action with what has been happening in the markets, my Barclays share price prediction is still to the downside. The current push to the downside is not a price reversal but a likely price retracement. Therefore, I still expect Barclays’ price to fall below the recent price low of 141p price level again. There is a high likelihood that we might see Barclays’ share price trading below the 140p price level in the next few trading sessions. However, a trade above the 155p price level will invalidate my bearish trend.
This post was last modified on Oct 04, 2022, 14:09 BST 14:09