Barclays posted strong Q1 results – watch 108p
Nicolas Suiffet April 29, 2020 8:59 AM
Barclays reported strong 1Q results. A technical rebound is ongoing.
Barclays reported strong 1Q results: "RoTE, excluding litigation and conduct, was resilient at 5.1% (Q1 19: 9.6%). EPS, excluding litigation and conduct, was 3.5p (Q1 19: 6.3p), while statutory EPS was also 3.5p (Q1 19: 6.1p). Profit before tax was £913m (Q1 19: £1,483m). Credit impairment charges increased to £2,115m (Q1 19: £448m). This increase reflects £405m in respect of single name wholesale loan charges in the quarter and £1.2bn net impact from a revised Baseline scenario (the COVID-19 scenario).
From a technical perspective, the stock price has broken above the upper Bollinger band. The daily Relative Strength Index (RSI, 14) is now standing above 50%. However, Barclays faces significant hurdle near 108p. A daily closing price above the horizontal resistance at 108p would call for a reversal up trend and would open the way to a further rise towards 116p and 140p.
Alternatively, a break below 88.8p would invalidate the bullish bias and would call for a test of March 19 low at 73p.
Source: GAIN Capital, TradingView
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.