The Barclays share price is relying on a beat from tomorrow’s earnings release. For BARC to reverse the recent decline, the numbers need to be good.
UK banking giant Barclays Plc (LON: BARC) will tomorrow deliver its trading update for the most recent quarter.
Earnings per share for the three months to June are expected to come in at £0.095 per share vs £0.006 per share in the same quarter of last year.
Furthermore, revenue is seen £5.33 Billion, a decline of 0.09% from the previous years quarter.
This week will shine a light on the health of the UK banking industry, with the Barclays earnings coming ahead of Lloyds plc, who report on Thursday, followed by Natwest on Friday.
Although the Barclays share price has advanced 8% to 168.04p from last week’s decline to 156.10p, it is still 11% lower than the March 190.58p high.
Additionally, with a strong band of price resistance sitting just above the price, the pressure is on tomorrows data to deliver an upside surprise.
The daily price chart shows BARC has been trending lower over the last 4 months. resulting in the formation of a descending flag pattern. The upper end of the flag is visible at 172.00p and is the first line of resistance. Above that, the 50-day moving average at 175.24p and the 100-day at 178.59p reinforce the upside resistance.
Notably, the bottom edge of the flag aligns with the 200 DMA at 158.01. The moving average reversed the decline of the 19th, and therefore, 158.00p should be viewed as significant support.
On that basis, a close below 158.00p would put the bears firmly in control of the price. moreover, a deeper correction would then target the January low at around 130.00p per share.
However, should the price clear 178.60p, the power is handed back to the bulls. In this event, the 2021 high at 190.58 would be under threat. Furthermore, if the price advances beyond 190.58p, the 2017 high of 220.70p becomes an achievable goal.
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