Barclays

Thursday, 27th April 2017 15:08 - by Rajan Dhall

Tomorrow we look forward to earnings from UK banking heavyweight Barclays. Fortunes have been improving for the global bank, but with this in mind the expectations from analyst's creeps higher. The Co. have been trying to cut costs and have managed to shrink bonus pools and this could help the Co.'s earnings.

There has only been one major issue of late and that has been the whistle blowing scandal where CEO Stanley was put under investigation regarding an attempt to uncover the individual concerned, but this should not affect earnings. Also of note six research analysts have rated the Co. with a sell rating, four have given a hold rating and nine have assigned a buy rating, so analysts seem to be weighing on the long side.

After being on a good run since the start of the year the share price has hit a ceiling level at the 240p mark. Can tomorrows results change this and help the share price push to the longer term target of 290p? This week the sector has been hit with a string of good results following the US lead. Lloyds reported this morning as now trade higher by 2.5% after hitting highs of 72.50p the highest level since June 2016. 

On the chart below, we can see the share price is just under the value area of around 230p after gapping up on the 25th April. We have now broken though the trend line and the resistance level of 211.06p, if we see a positive report the 240p resistance will surely be the target. and on the downside support may lie at the 205.20p level. 

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.