After months of sideways trading action, Barclays share price has fallen back under £1, largely due to fears over the British Government imposing a second Covid-19 lockdown.
Barclays analysis shows that the FTSE 100 stock could be preparing to drop towards the £0.25 area over the medium term.
Barclays medium-term price trend
Barclays analysis shows that the banking stock has staged an important technical breakout to the downside, and is exposed to further heavy losses. The daily time frame highlights a bearish breakout from a long-standing symmetrical triangle pattern, placing the stock under heavy technical pressure.
According to the size of the breakout on the daily time frame, the Barclays share price could eventually fall towards £0.25. Technical analysis also shows that a bearish death cross is under way, with the 50-day moving average crossing over the 200-day moving average.
Key technical support prior to the £0.25 level is located at the £0.80, £0.60 and £0.45 levels.
Barclays short-term price trend
Barclays’ share price is heavily bearish over the short term while trading below the technically important £0.98 level. Barclays technical analysis shows that a bearish head-and-shoulders pattern has been activated during the latest decline in the banking stock.
According to the one-hour time frame, £0.80 is the first bearish target, while the second bearish marker is seen around the £0.70 area.
Overall, watch out for further short-term losses in the Barclays share price while the banking stock continues to trade below £0.98.
Barclays technical summary
Barclays technical analysis shows that the banking stock is starting to break down and may soon revisit the worst level of 2020 so far. The £0.25 level is seen as a possible medium-term target.
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