What now for Lloyds Bank shares?
Independent analyst Alistair Strang is not sold on positive movements for the high street lender amid a marked change of sentiment in markets.
5th August 2024 08:57
by Alistair Strang from Trends and Targets
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It looks like the markets may be reacting to the threat of war in the Middle East. What’s a bit surprising though is that the price of oil has been dropping quite fast and, at $76, is now trading in a zone where a visit to $71 has become possible with our eventual secondary in the 50s.
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With everything going on, we’re not exactly sold on positive movements for Lloyds Banking Group (LSE:LLOY) anytime soon, instead anticipating quite the opposite.
From a fairly immediate viewpoint, weakness below 55p looks capable of triggering reversals down to an initial 54.1p and hopefully a rebound. Our secondary, should such a level break, calculates at 51.4p and the prospect of longer-term trouble.
Danger signs become writ large should 51.4 break, as a cycle to 48.2 becomes expected, dragging the bank’s share price back below the blue downtrend since 2009, and threatening to dump the share price into a region where the recovery cycle will need to start again.
Source: Trends and Targets. Past performance is not a guide to future performance.
On the converse side, Lloyds now needs to exceed 57.4 to give any hope, once again entering a zone with an ambition at 65.8p and beyond.
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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