Barclays’ share price will be in focus today as investors pay attention to some of the world’s biggest prime brokers. Last week, Barclays stock closed at 182p, slightly below its year-to-date high of 185.50p.
Barclays is one of the largest prime brokers globally, offering services such as OTC clearing, futures, and foreign exchange prime brokerage. These firms are currently under pressure due to the liquidation of Archegos, an American hedge fund.
Earlier today, Nomura and Credit Suisse announced that they could lose billions of dollars because of the Archegos crisis, leading to a 16% drop in Nomura’s share price, wiping out $3.2 billion in value. Other banks like Goldman Sachs and Deutsche Bank may also be impacted. While Barclays has not been directly named in the crisis, its stock could still be affected.
Despite this, Barclays’ share price has performed well this year, rising by more than 32%, outperforming other London banks. On the four-hour chart, the stock appears to have formed a major top pattern and is currently near the 25-day and 15-day exponential moving averages (EMA), with the Average True Range (ATR) continuing to decline.
While the shares may continue to rise, there is also the potential for a significant pullback in the near term. If that occurs, the next key support level to watch is 170p.