Barclays (LON: BARC) share price is struggling to gain momentum after a strong rebound from the March 2023 lows. The shares of the British banking giant have been consolidating in the same range for months. The latest analysis suggests there could be more downside for the stock.
On Monday, shares of major British banks showed a negative price action as the FTSE 100 index remained sideways. The benchmark index was up 18 points just before the start of the New York session. The Barclays shares were trading at a minor loss of 0.12% in their third red day in a row.
As per the latest Barclays news, the CEO intends to revamp its investment banking business in the US. CEO, C.S. Venkatakrishnan recently held a meeting with the US investment bankers to address the recent changes in the management. This follows a similar but smaller meeting held last month.
So far, around 30 bankers have left Barclays to join the rivals. As a result, Barclays CEO has warned the former staff over poaching its current employees as the banking group struggles to keep up with its Wall Street ambitions.
Technical analysis shows that LON: BARC stock has been trading within the same range for many months. The price action appears to be forming a head & shoulders pattern. This is a very bearish pattern. However, the pattern is still complete and the price needs to break below 150p to confirm the bearish thesis.
Therefore, Barclays share price forecast will become very bearish if its drops below 150p once again. I expect a strong bounce from the range lows of 142p, but the measured target of the head & shoulders breakdown appears to be 138p.
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 Jun 12, 2023, 15:12 BST 15:12