Barclays (LON: BARC) share price has been highly volatile over the past few months, largely due to the banking crisis in the US. Despite a significant decline in March 2023, Barclays and other bank stocks have shown a strong recovery.

On Wednesday, the FTSE 100 index, the benchmark for UK equities, lost 47 points. Despite this, bank stocks were still performing well. Barclays’ share price was trading at 153p, up 1.06% during the session. Similar gains were seen with HSBC, NatWest Group, and Lloyds.

Barclays is set to release its first-quarter 2023 earnings report tomorrow. Estimates suggest the bank’s earnings will be 9.708p per share, with revenue reaching £678 billion. According to a company-compiled consensus of 12 analysts, the quarterly profit is expected to align with the same period in 2022. This means Barclays’ share price is likely to remain volatile until the report is released.

The bank is expected to report a pretax profit of £2.231 billion for Q1 2023, slightly down from £2.234 billion last year. Similarly, net attributable profit is projected to be £1.445 billion, compared to £1.404 billion a year ago.

Given the upcoming earnings report, Barclays shares are expected to show increased volatility. After the announcement, the stock may retest the 161p level, a critical point due to the convergence of the range mid and the 200-day moving average on the daily chart.

A rejection at this level could turn the outlook for Barclays’ share price bearish, potentially causing shares to drop to the 142p range, which could act as support. Broader market sentiment in the banking industry will be crucial in determining the stock’s direction.