An analyst's outlook for Lloyds Bank shares
After a terrible month for the banking giant, our technical analyst finds real rebound potential.
27th August 2019 09:13
by Alistair Strang from Trends and Targets
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After a terrible month for the banking giant, our technical analyst finds real rebound potential.
Lloyds Bank (LSE:LLOY)
Why, in the UK, do many of us spoil holiday weekends with "stuff". A visit to Ikea, trudging round B&Q, a garden centre trip, and of course, grand-daughters joining us, complete with gold glitter which spilled everywhere. Add temperatures in double figures (it is Scotland after all) and I'm now approaching a look at the Lloyds Banking Group (LSE:LLOY) share price with wafer thin humour.
Last time Lloyds was reviewed, we calculated an initial drop target of 51p, something it 'successfully' hit with the market opting to gap the share downward quite aggressively.
Our secondary, at 46.8p has remained untroubled, the lowest achieved thus far being 48p.
The situation remains of weakness below 48p pointing at 46.8p with some real rebound potential.
If broken, secondary now looks like 41.5p. Things are liable to become serious, if the share price actually closes a session below 47.5p as there's a further risk making itself apparent.
The Big Picture shall start suggesting 30p is trying to exert a long-term influence.
Ultimate bottom, if it all goes completely wrong, calculates at a very visually improbable 5p!
At time of writing, Lloyds is trading around the 50p mark, needing above 51.75p before we dare take any rise seriously as this calculates with the potential of an initial 54p and recovery above the historic uptrend.
If exceeded, secondary looks like 59.4p, along with some hesitation.
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.
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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