Barclays share price has been on a steady upside trajectory for the past few weeks as bank earnings season approaches. The stock ended Tuesday’s trading session 0.44% lower at 185.84p. Barclays’ shares have inched 15.95% higher since the start of the year.

Is Barclays Out of Favour?

Barclays share price has staged a strong comeback since the start of the year, jumping more than 38% from its lowest level in October last year. Even so, investors seem to be out of favor of the stock for several reasons.

First, investors in European countries no longer appreciate the old universal banking technique. Banks in the UK such as Lloyds and Natwest regained popularity as they largely focus on their retail and commercial operations. The banks have shrunk their investment banking units.

Second, Barclays’ giant credit card business is seen as a potential vulnerability amid the impending UK recession. Analysts have pointed out that Barclays’ credit card operation has contributed to 70% of its losses in the past.

According to analysts, higher interest rates should boost Barclays’ income for this year. However, costs have become less stable due to rising inflation. As such, 2023 could be an uncertain year for Barclays Plc and the financial sector in general.

Barclays Share Price Outlook

Barclays share price has staged a strong recovery since the start of the new year. On the daily chart, the BARC stock has managed to remain above the 50-day and 100-day moving averages. Its Relative Strength Index (RSI) has moved into the overbought zone.

Therefore, Barclays stock price is likely to continue moving higher ahead of its earnings report later in February. If this happens, buyers will be targeting the resistance level at 200p.