Barclays’ share price has been in a strong downward trend over the past few months. The stock was trading at 143p, just above last week’s low of 132p. So far this year, it has dropped by over 35% as the bank faces several significant challenges. Attention is now turning to the ongoing bank earnings season, leading many to wonder if Barclays is a good stock to buy.

Barclays, a major bank with over 325 years of history, operates in 39 countries, including the UK and the United States. It serves customers across personal banking, business banking, corporate banking, and investment banking.

The bank’s business is divided into two key segments: Barclays UK and Barclays International. Its international operations include consumer cards, consumer and investment banking, global markets, and corporate banking.

Barclays generates most of its revenue from the UK and US, with additional income from the Asia-Pacific and European markets. This diversified business model helps balance the company’s performance. For instance, a decline in investment banking revenue has been offset by rising interest rates.

Barclays is set to release its quarterly results later this month. In the meantime, its shares will be influenced by the broader bank earnings season, which will provide insights into the global banking industry as interest rates rise.

On Friday, JP Morgan’s stock jumped after it reported strong results, earning $9.7 billion despite a 17% drop in profits this year. Citigroup also outperformed expectations, while Wells Fargo and Morgan Stanley disappointed due to a sharp decline in investment banking revenue.

Given the weak performance of investment banking this year, analysts expect Barclays to have had a mixed quarter. The volume of deals has fallen significantly as interest rates have risen.

The daily chart shows that Barclays’ stock price made a strong recovery following the mixed bank earnings, rising from a low of 132p to a high of 149p. As it climbed, the stock broke through the key resistance level of 145p, which was the lowest point on July 14. However, the shares remain below the 25-day and 50-day moving averages, and the MACD has dipped below neutral.

As a result, the stock is likely to resume its bearish trend, with sellers targeting this month’s low of 130p. A move above the 150p resistance level would invalidate this bearish outlook.