Barclays (LON: BARC) share price has rebounded strongly from its June lows. However, due to the negative sentiment in the UK stock market, the shares are once again having a pullback. After a 5.62% surge last week, the shares already have a 1.62% pullback this week.
The UK stocks are showing an across-the-board weakness as the FTSE 100 index has failed to show any strength. While the US stocks are surging due to a pause in rate hikes by the Fed, UK stocks are still getting headwinds by the rising inflation.
As per the latest Barclays news, the Financial Conduct Authority (FCA) is set to meet the top management of major banks to address profitability concerns as the interest paid on savings is falling behind rising mortgage rates. The meeting is scheduled for Thursday this week.
In other news, the top rating agency Fitch has recently affirmed Barclays Bank’s long-term issuer default rating at A with a stable rating. In the meantime, recent stats show that the UK is the only G7 economy where inflation is still rising.
Technical analysis of the LON: BARC chart reveals that the stock perfectly met our price target of 141p a few weeks ago. This retest was on the cards due to multiple confluences. This marked a retest of the range low and the breakdown target of the head & shoulders pattern.
Barclays share price forecast needs to reclaim the 158p level to flip bullish. This is the mid of the range in which the shares have been trading for the past many months. A reclaim of this level may push propel the shares to retest range highs that lie at 178p. The invalidation of this move will be another breakdown below 150p.
In the meantime, I’ll keep sharing updated Barclays stock forecast and my personal trades on my Twitter where you are welcome to follow me.
This post was last modified on %s = human-readable time difference 14:49