How Lloyds Bank shares can escape this mess
14th June 2018 09:39
by Alistair Strang from Trends and Targets
Lloyds Group (LSE:LLOY)
In keeping with the spirit of Christmas (Xmas 2016!) it appears Lloyds Banking Group may be preparing itself to make a move.
Unfortunately, that's about all which can be said due to the movement looking rather downward. There are some rather odd potentials showing.
Firstly, there's a whole lot of 1p nonsense, doubtless being caused by the relatively flat movement of the share price this year. If we adhere to our usual style of presentation, we are therefore supposed to be writing "moves now below 62p suggest 61p next with secondary, if broken, at 60p".
We're not immune from spotting the ridiculous, so instead we've stepped back to view the bigger picture which, alas, is not much better.
The current situation is of weakness now below 62p pointing at an initial 60p with secondary, if (when) broken at a hopefully bouncy bottom at 57.75p. Given this matches the uptrend since 2011, it's also believable.
We've opted to show a further number on the chart should this red trend be broken as it makes 52.5p perfectly capable of presenting "the trampoline level".
To escape this mess, the share price requires bettering blue, currently around 71p, as this is very liable to promote an initial 77p with secondary, if bettered, at 86p.
Visually, the price shall require a miracle to achieve this.
Source: interactive investor Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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