Barclays’ share price has given back most of its gains following a strong first-half trading update, with the elusive 200p level slipping further from reach. Earlier this month, it seemed likely that Barclays (LSE: BARC) would break the 200p barrier, something it hasn’t achieved in the last three years. However, once again in 2021, the stock was rejected before hitting that key level.

Barclays, the UK’s fourth-largest bank, operates more like a US investment bank compared to many of its British rivals. This approach led activist investor and major Barclays shareholder, Edward Bramson, to push for a more conservative business model. When his bid to alter the company’s strategy failed, Bramson sold his 6% stake in the bank in May.

Throughout most of April, Barclays’ share price attempted to hold above 190p. Despite brief moments above this level, it failed to close higher and slipped 10% in May before another push toward this resistance level. In June, the stock nearly reached 190p again but retreated at 188.04p, falling by 16% over the next month. A new attempt followed on August 11, but after hitting a high of 187.50p, the share price has started to decline again. This raises the question: if Barclays can’t break through resistance after strong earnings, is the stock heading lower?

Looking at the daily chart, a clear horizontal trading range has formed over the past nine months. The lower boundary, around 160p, was previously a strong resistance level, which was breached in March as the stock approached its yearly high of 190.50p. Barclays retested this lower boundary in July, dropping to 158p before rebounding, making 160p a significant level of support and resistance.

Since failing to break 190p, the share price has fallen below the 100-day moving average at 178.84p and is approaching the 50-day moving average at 174.68p. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicate a downward trend.

This suggests that Barclays may continue to decline below the 100-day moving average and move toward the 200-day moving average at 165.15p. While this level could hold unless a major negative catalyst emerges, a break below it would bring the 160p support level back into play.

As long as the price remains below 190p, the outlook remains somewhat bearish. However, if Barclays manages to break through this resistance, the outlook would shift to positive. For now, though, further downside seems likely.