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Barclays to report on Wednesday

Barclays will report its first-half profits for 2014 on Wednesday; the consensus is for revenue of £26.98 billion and a net income of £3.64 billion.

Barclays building
Source: Bloomberg

Barclays is trading at 219p, with the share price down 14% since early May when the bank announced a 5% decline in profits for the first three months of 2014, while analysts were expecting an increase of 2.8%. Barclays also suffered a 41% decline in income from fixed income, currencies and commodities (FICC). This is a common theme among banks but from Barclays depends heavily on its investment banking division, a structure that was put in place during the Bob Diamond era.

The share price took a knock at the end of June, when the bank was investigated for ‘dark pool’ trading activity, The trading volumes dropped considerably since the story broke but the share price has failed to fill the gap between 229p and 225p.

Barclays is trading higher today but this mostly due to the better-than-expected figures from the Royal Bank of Scotland, which were unexpectedly released ahead of schedule.

The 210p level is currently providing support for the stock; if that level is breached the next level down is 200p. If the figures are good and the 225-229p gap is filled, the target will become the 200-day moving average of 250p.

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