Barclays share price (LON: BARC) is having its first green day after a massive sell-off. The global banks had a rough few days due to the collapse of Silicon Valley Bank (SVB). This triggered a bearish price action for most US & UK bank shares. Consequently, Barclays shares dipped to their fresh yearly lows at GBX 146.
On Tuesday, LON: BARC turned green for the first time in 4 days. After a major pullback, the shares are recovering and trading 3.65% above their yesterday’s closing. At press time, the price is trading at GBX 152.92, which is well above the psychological barrier of GBX 150.
Most UK shares showed a very negative price action at the start of this week. The benchmark FTSE 100 dipped to its fresh yearly lows as its constituent banks experienced a massive sell-off in their shares. However, the benchmark UK index gained 350 points on Tuesday as the bank shares rebounded along with other major companies.
It is also worth mentioning here that the Barclays share price UK started the day with negative price action. The shares turned positive as the release of US inflation data neared. Another reason for the price increase is the bounce in FTSE 100. Nevertheless, despite a green day, the overall outlook of Barclays shares is bearish.
LON: BARC chart reveals very disappointing details for the bulls. After a strong start in 2023, the shares have lost all the gains and now trading close to their yearly lows. Furthermore, the price has also broken below its December low of GBX 152, which can now act as a supply zone.
In the coming days, Barclays share price can retest the GBX 160 level. However, this will most probably result in rejection as there lies the 200-day moving average. In case of another lower low in the next few days, the price can get some support from GBX 142.6. This is a major demand zone that has acted as a reversal zone many times.
This post was last modified on Mar 14, 2023, 16:26 GMT 16:26