The Barclays share price is up this Friday, following the Bank of England’s decision to raise interest rates by 25 bps on Thursday. A rise in interest rates tends to favour bank stocks as it raises the returns on investments on money market instruments such as Treasuries and bank loans. Barclays’ share price uptick is the second in seven trading sessions.
The bank’s stock has been facing downside pressure after the Bank of England announced last week that UK banks were no longer too big to fail and that it would set up resolvability assessments of major UK banks.
The day’s uptick is somewhat muted as the news of the exit of Nat Tyce, who headed the desk for Macro Trading for EMEA and Asia-Pacific, hit the airwaves. Tyce is leaving after 25 years in the bank, leaving behind a record of turning the trading division into a powerhouse.
From a technical perspective, the intraday uptick could enable the formation of a bullish harami. This pattern requires confirmation by a bullish outside day candle. The Barclays share price target as set by several institutional analysts lies at 237.89p, which gives an upside target of 51.25%.
The intraday uptick preserves the 156.92 support and forms a bullish harami candlestick pattern. The pattern would require an outside day candle to confirm the uptick, targeting the 161.62 price resistance as the new target. A continuation of the advance opens the door toward the 167.86 price level (4 March high and 8 June low).
Above this level, 177.34 (17 March high) and 186.14 form additional northbound targets. On the flip side, failure to defend the 156.92 support opens the door for a decline that initially targets 151.12. Additional southbound targets are found at 147.48 (29 April and 13 May lows), and at 140.80 where the low of 7 April 2022 is found.
This post was last modified on Jun 17, 2022, 14:41 BST 14:41