The Barclays share price took a sharp rebound in the past month. The BARC stock has jumped more than 18% from its multi-month low of 157p hit on July 19. It has also jumped more than 34% since the year started. Nonetheless, it remains below its highest level this year of 191.10p. Barclays PLC has a total market capitalization of £31.4 billion.
Barclays is a large British universal bank that operates in key countries such as Canada and the United States. The bank operates its business in two key business divisions: Barclays UK and Barclays International. Unlike other banks such as NatWest and Lloyds, Barclays is supported by a service company, Barclays Execution Services.
Barclays share price was on a strong rally in August, as investors reflected on strong earnings from major American banks such as Morgan Stanley and Goldman Sachs. These major investment banking companies reported strong earnings, signaling good performance in the industry in general.
The company’s shares also jumped after its deal with GAP Inc. Barclays agreed to the purchase of a $3.8 billion credit card portfolio from GAP Inc, in a bid to expand its consumer operations in the United States. GAP is an American clothing and accessory retailer with thousands of stores globally.
Over the past few years, Barclays has been expanding at a fast rate. The company acquired an AARP account from JPMorgan Chase in October 2020. Along the way, it has also secured partnerships with companies like JetBlue, American Airlines, and the Wyndham Hotels chain.
However, just like most banks, low-interest rates remain a challenge for Barclays. Currently, there are no signs that the Bank of England will increase its rates.
Barclays Share Price
The four-hour chart indicates that Barclays share price has made a strong recovery in the past month. It hit an intraday high of 186. 82p before pulling further. At the time of writing, it was slightly higher at 185.60p.
It is moving above the 25 and 50-day exponential moving averages. It is also trading above the 50-day moving average.
Therefore, the price is likely to remain bullish in September. However, this view will be invalidated by a drop to the key support at 170p.