Barclays (LON: BARC) share price has been experiencing a sharp sell-off for the past few days. The shares of the banking giant failed to break above the 160p level, which is a critical level on the chart. Consequently, the stock has been 5.63% down since the start of the week.
The UK shares tanked on Friday as the Bank of England hiked rates more than expected. Till press time, the benchmark FTSE 100 index was down 30 points. Barclays shares also slid by 1.29% and were changing hands at 145p. The latest analysis reveals there could be more downside for the stock.
On Thursday, the Bank of England raised the interest rates in the UK by 50 basis points. This was quite surprising for the markets, which were expecting a 25 bps hike. Consequently, the markets turned red as they opened today. Barlcays share price also reacted negatively to the news despite being a bank share.
The latest rate hike puts the interest rate in the country at 5%, the highest level since 2008. This has further deepened the fear of a recession later this year. The drastic step was taken by the central bank to tackle the stubborn double-digit inflation in the UK.
Technical analysis shows that LON: BARC is yet to hit a demand zone. The shares are currently trading at 145p, which is just a few pennies above the critical support level of 140p. In the coming days, I expect the stock to tag this level which will also mark a retest of the range lows.
Barclays share price forecast can only flip bullish if it breaks above 178p and gains strength. Until then, bears will remain in control. Furthermore, the macroeconomic conditions in the country are also deteriorating, which may slow down the economy in the coming months.
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 12:05