Barclays (LON: BARC) share price is on the road to recovery after a 13% correction that it faced in August. The shares of the British bank now stand 5.7% above the 142p monthly low. The shares are currently changing hands at 151p, up 1.33% till press time.
The recent recovery in Barclays shares was partly aided by the bullish sentiment in the UK stock markets that began last week. The FTSE100 is up 3% from its August low of 7254 points. The index is expected to bounce 150 points further if bullish sentiment sustains.
An analysis of Barclay’s balance sheet reveals that the British lender has kept aside a significant amount of cash. The British bank seeks to purchase loans in order to compete directly with private credit funds and gain a significant chunk in the $1.5 trillion market for private debt.
Barclays also shows its interest in buying a stake in the U.K. merchants’ payment processing unit. According to analysts, the payment provider is worth around £2 billion in EBITDA. Barclays share price is 22% down from its yearly high.
The price chart for LON: BARC shows the price trading inside the 140p-178p trading range. The price has rebounded 5.7% from its August low. The chart also shows a confluence of the 200 MA and the middle of the range, 158p.
The Barclays share price forecast might flip bullish if it breaks above the 200 MA and the range mid of 158p. On the other hand, a 7% correction to the range low of 140p will be on the cards if the price fails to reclaim 157p.
In the meantime, I’ll keep sharing the 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 20:41