Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Can Barclays shares reverse latest drop or has a bearish trend set in?

The Barclays share price has fallen 2.85% over the last five sessions. The bank’s beleaguered fortunes don’t appear to be changing any time soon but analysts remain confident that a mini-rally is on the horizon.

  • Barclays shares drop 2.85% in the last five sessions.
  • Could Barclays share price drop below 140p?
  • Analysts remain bullish despite recent slump.
  • Want to trade Barclays shares? Open an account today.

While Barclays shares rose modestly on 14 January, over the last five sessions they have dropped 2.85%. Indeed, the Barclays share price has fallen from 157p to 152p in the last five trading sessions, bucking an otherwise positive trend over the last four weeks. Although Thursday’s closing price (152p) was 5.64% higher than we saw on 15 December (144p), a bearish sentiment may be setting in.

Analysts not ready to reverse forecasts yet

Despite the recent trend, Morgan Stanley, Credit Suisse Group and Goldman Sachs have all maintained their neutral ratings. Although equity analysts aren’t moving to a negative rating just yet, the possibility of Barclays shares dropping below 140p is possible. Comparatively speaking, that’s better than the lows witnessed in 2020. However, Brexit uncertainty and COVID-19 restrictions are weighing heavy on the bank.

The UK’s departure from the EU earlier this month closed a lot of previously open doors. However, financial services agreements remain a sticking point. Negotiators are now working towards a March deadline, after which banks in the UK and Europe should have a better idea of how money will flow between the two nations. Another factor that may be pushing down the Barclays share price is interest rates.

The UK is still gripped by COVID-19 lockdowns. Interest rates are likely to remain low for some time due to the economic damage caused by government restrictions. The Bank of England may also recommend negative interest rates. Silvana Tenreyro, who sits on the Bank of England’s monetary policy committee, has suggested that a rate below zero could stimulate economic growth in the wake of COVID-19.

Will negative interest rates help or hinder Barclays’ share price?

Tenreyro believes this strategy wouldn’t harm the profitability of banks and has the potential to aid the UK’s economic rebound. However, interest rates of 0.1% have already impacted Barclays’ bottom-line. Therefore, more talk of cuts may be adding to the current bearish trend. But despite the current dynamics, UBS and Jefferies Financial Group analysts are bullish.

The former reiterated its buy rating this week, while the latter has maintained a Barclays share price target of 227p. Given the current slump, which may be a long way off. But the message from analysts is that Barclays shares have potential. Whether or not the current downswing turns into a sustained freefall is unclear. Brexit and COVID-19 remain uncertainties that could swing the market in either direction. However, with neutral or buy ratings currently in place, the question appears to be when not if the Barclays share price will get back on track.

Do you think the Barclays Share price slump will be short-lived?

Open a demo account to try your hand at online trading. Alternatively, for a small deposit, you can speculate on Barclays shares with spread bets or CFDs. Spread bets are completely tax-free, while CFDs are free from stamp duty.1 You can also buy and take ownership of UK shares for just £3 with us.2

Open an account to start trading or investing in UK shares, including Barclays.

1. Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

2. Deal three times or more in the previous month to qualify for our best rate.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" edit-mode="false"> liveprices.javascriptrequired


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.