Barclays technical analysis: Breakout above £1.15 needed
09:09, 7 May 2020
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Barclays share price is starting to consolidate around the £1.00 level, following a recent series of rejections from just below the £1.15 resistance level.
Barclays analysis shows that the banking stock could rally towards the £1.40 level if the £1.15 resistance level is overcome.
Barclays medium-term price trend
Barclays share price remains at its weakest level in over a decade, as the banking stock fails to attract buying interest around the £1.00 level.
Since the start of the year Barclays share price is currently trading down by around 45 per cent, however, the banking stock has recovered by over 30 per cent from the 2020 trading low.
Barclays technical analysis shows that a bearish triangle pattern took place earlier this year after price moved below the £1.35 level.
The daily time frame shows that bulls may retest the mentioned breakout area, around the £1.35 level, if they can force a breakout above the £1.15 level.
Failure to break above the £1.15 level will likely see sellers starting to target towards the £0.80 support area.
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Barclays short-term price trend
Barclays analysis shows that banking stock has a short-term bullish bias while price trades above the 0.9700 level.
The lower time frames currently show that a large inverted head-and-shoulders pattern has formed, following the second rejection from the £1.15 level.
According to the size of the bullish pattern the banking stock could rally towards the £1.40 level if a breakout above the £1.15 level occurs.
Should we see price moving under the £0.80 level, the bullish pattern will be invalidated and the banking stock is then at risk of falling towards the £0.35 level.
Barclays technical summary
Barclays analysis highlights that the share price of the British bank could rally towards the £1.35 to £1.40 technical area if the £1.15 resistance level is broken.
