Interesting potential for Lloyds Bank shares
It's already made a full recovery from the car finance crisis, and independent analyst Alistair Strang believes there could be more to come if this happens.
10th February 2025 07:37
by Alistair Strang from Trends and Targets
Regular readers will know we're quite attached to our "Gap Down / Gap Up" (GaGa) arguments, a fairly solid track record almost making us comfortable in proposing price movements based on such an obscure price dance by the UK market. When these arguments are applied to Wall Street and S&P500 shares, the results are almost as reliable, but only when a few other of our weird rules are applied.
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It'd be nice to say (with vague justification) that Lloyds Banking Group (LSE:LLOY) is now trading in a zone where a long-term cycle to 111p looks viable. It certainly makes for a great headline and may prove possible, but the unpleasant reality of timeframes intrudes.
Our Gap Down / Gap Up logic implies Lloyds' share price wants to head to 64.85p on the current cycle, so we shall be more comfortable discussing what the future may hold, should 64.85p be exceeded. On Friday 7th, Lloyds managed to spike to 63.56p at the open, even repeating the feat 30 minutes later to prove it wasn't a mistake. Amazingly, this little dance actually allows for another fascinating detail to enter the picture. If we draw a downtrend since 2009, it runs through the high of last October, providing some quite interesting share price twitches which attempt to validate this downtrend as being viable.
Should this be the case, share price movements bettering 64.85p now exhibit interesting potentials, giving an initial target level at 68.8p with our secondary, if beaten, a visually believable longer-term 89p, along with almost certain hesitation. And even more fascinating, it actually would place the share on a cycle to an eventual 111p, matching a high of 2009 and the year of the financial crisis.
If things intend to go horribly wrong for Lloyds, their share price needs to slink below 52p as this could easily trigger reversals to an initial 47p with our secondary, if broken, a bottom at 42p. But for now, we're strangely enthusiastic...
Source: Trends and Targets. 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.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.Â
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