Are Lloyd's Bank shares about to break 10-year downtrend?
There have been few highlights since the financial crisis, but this chartist has spotted a catalyst.
25th November 2019 09:31
by Alistair Strang from Trends and Targets
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There have been few highlights since the financial crisis, but this chartist has spotted a catalyst.
Lloyds Banking Group (LSE:LLOY)
Optimism is a strange word to use, when discussing the UK Retail Bank sector.
Rather than use the term "suspend disbelief', we rather prefer the slightly more arcane term 'cognitive estrangement' when asking for acceptance of the looming scenario for Lloyds Banking Group (LSE:LLOY).
It should probably be pointed out, when a writer employs terminology no-one is quite familiar with, it's usually because they don't actually believe the argument about to be presented.
Most of the UK doubtless watched, with 'cognitive estrangement' the appalling performance of our country's prospective leaders during the two hour Question Time on Friday.
It took a while for the penny to drop, it was light entertainment, just lacking Ant 'n' Dec presenting due to their prior engagements anywhere else.
Lloyds Banking Group has two distinct calculations telling us the price is about to wander up to 63.3p.
If exceeded, our secondary calculates at a longer term (or later that day!) 68p.
The trigger for such a wonderful movement is supposed to trade anytime now above 60.7p.
It's very possible the 63.3p ambition shall prove viable, especially due to the presence of the downtrend since 2009.
As for our 68p calculation, this enters the land of politicians, lies, and broken promises.
As the chart shows, achieving 68p shall break the downtrend of the last 10 years.
Such a movement also achieves a "higher high" than the previous time the share price touched the trend, theoretically allowing a longer term 85p to enter the picture.
We have our doubts, certainly until December 13th at the very earliest.
If Lloyds intends trouble, now below 55p allows for an initial believable 52p. If broken, secondary is at 48p and should prove capable of a rebound, given the presence of the prior low.
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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