Strong Barclays rally hits key technical resistance at £219.20 which short-term caps

[MongiIG]

Strong Barclays rally hits key technical resistance at £219.20 which short-term caps

Having risen by 10% year-to-date, the Barclays share price is taking a breather.

Source: Bloomberg

 

IG Analyst | Publication date: Monday 17 January 2022 

The Barclays share price, with higher UK rates in the wings, continues to surge upwards, trading at levels last seen in October 2015 and up over 10% year-to-date compared to the FTSE 100’s +1.14%.

Last week’s announcement that the bank won a high court case over a $131 million debt owed by Bavaguthu Shetty, the founder of two former FTSE 350 companies that collapsed amid a fraud scandal, seems to have been rapidly discounted, however, since the share price started to lose upside momentum on Friday.

This comes as no surprise after the quasi-uninterrupted day-on-day gains seen since the beginning of the year and end of week profit-taking. Added to this comes the fact that key long-term technical resistance has been hit. Technically speaking the Barclays share price has entered significant technical resistance seen between the June 2009 to November 2010 lows and the March 2012 high at £213.40 to £219.20, the upper reaches of which are expected to cap in the short-term.

Having said that, the long-term uptrend will stay intact while the share price evolves above the December 2021 trough at £176.30 with the January 2014 and August 2015 high as well as the 200-month simple moving average (SMA) at £245.30 to £252.10, providing an upside target zone for the months ahead.

Source: ProRealTime