More to come from high-flying Lloyds Bank shares?
Currently at levels not seen since the start of 2020, analyst Alistair Strang explains why there's a degree of confidence in his forecasts for the high street lender.
15th July 2024 07:34
by Alistair Strang from Trends and Targets
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We can claim a recent major success with Lloyds Banking Group (LSE:LLOY) due to our previous analysis giving criteria by which the share price should’ve triggered an initial 58p with secondary, if bettered, at 59.5p with any movement exceeding an initial 56.1p.
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Neither target ambition was particularly ambitious but what we really find interesting is shown on the chart extract below. For the last six sessions, Lloyds share price has been scurrying around between our target levels, the implication being our logic is currently correct for this share. This is something which is often quite assuring, providing a degree of confidence for the future.
From our perspective, we’re now inclined to assign 60.4p as our next potential trigger level, due to movement above such a point now calculating with the potential of an initial lift to 64.3p with our secondary, if beaten, now at 65.8p.
According to the visuals, some hesitation should be anticipated at such highs, due to the market finally matching the highs before the pandemic plunge. For some reason, this sort of thing is proving an immediate hindrance in many rising cycles, though not all. As a result, we shall not be surprised, if this triggers, to see an attempt at the 70p level as a third level hope.
Our converse scenario, if everything decides to go wrong, which demands the share price move below 52p to potentially trigger reversal to an initial 50.8 with secondary, if broken, at 47p and hopefully a bottom.
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.
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