The Barclays share price has done well this year. As shown below, the stock has jumped by more than 28% this year. This makes it the third-best performing bank stock in the FTSE 100 after Lloyds and NatWest. So, can BARC shares continue the momentum?
Why Barclays shares jumped: The Barclays stock has done well this year because of three primary reasons. First, the UK economy has staged a stronger recovery than its peers because of the stronger coronavirus rollout. This recovery has helped the bank have fewer defaults in the UK where it dominates the credit card business. It has also helped the Bank of England (BOE) turn hawkish, eliminating the previous risks of negative rates.
Second, the Barclays’ share price has jumped because of the strong investment and trading business. In the most recent quarter, the division had double digits growth since volatility remained high. Finally, the bank did well because of its plans to return more capital to shareholders this year. So, can the bank stellar performance continue?
The daily chart below shows that the BARC share price has made a swift recovery after it dropped to 166p a few weeks ago. Precisely, it has risen by 11% and is slightly below its year-to-date high. The shares are above the 25-day and 50-day exponential moving averages (EMA). It is also above the important support at 158, where it formed a double-top pattern early this year.
Therefore, the shares will likely keep pushing as bulls target the YTD high of 190p. Bulls must push it above this level to continue with the upward trend. Another drop below 169p will invalidate the bullish thesis
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