Lloyds Bank shares: better times ahead?
27th September 2021 07:40
by Alistair Strang from Trends and Targets
Independent analyst Alistair Strang reveals what the charts say about both Lloyds Bank and Mercedes-owner Daimler.
When we last reviewed Lloyds Banking Group (LSE:LLOY) someone complained that covering the bank every three weeks was “too often”. Surprisingly, within four days of our report, the share (for a change) actually did something useful, hitting a trigger level and reversing to our initial drop target.
We also gave a useful bounce trigger of 45.8p (drum roll). On Friday the share experienced a price high at 45.81p! As a result, there’s a distinct threat Lloyds may be choosing a more interesting path for the future.
If we opt to be become the definition of “gullible”, allegedly it is now the case where above 45.81p should propel the share price to an initial 47.7p. If bettered, our secondary works out at 48.7p and, visually, there’s nothing ridiculous about the numbers. The problem risks being the downtrend from 2019, shown in blue.
At time of writing, the share price must exceed 46.173p to better this trend line, so providing a more realistic trigger level. We’re simply not sold on the idea of future gains being available, just because the price exceeded a trigger level by 1/100th of a penny, despite the near term visuals justifying some hope.
In fact, if we chose to embrace sanity, it’s still the case of the price needing above the 50p level to confirm happy days are ahead and, until then, there’s a serious risk of the share price just messing around.
Source: Trends and Targets. Past performance is not a guide to future performance
With Brit, Lewis Hamilton’s Mercedes managing to complete the Russian GP without being crowned by another car, we decided to perhaps worthwhile to take a glance at how the Daimler AG (XETRA:DAI), owner of the Mercedes marque, share price is doing.
The share has managed to ‘struggle’ above its high, pre-pandemic, and as the chart below shows, the price is now worth 4x the level experienced in March 2020. By virtually every standard, Daimler's share price is doing rather nicely.
The immediate situation is interesting as above €74.5 suggests coming movement toward €76.4. If bettered, our longer term secondary calculates at €83.4, giving the potential of a cycle commencing toward a long term €87 and beyond.
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.
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