Are Lloyds Bank shares ready to grow?
11th April 2022 07:19
by Alistair Strang from Trends and Targets
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Lloyds shares are roughly where they were a year ago, but are significantly higher than the pandemic low. Independent analyst Alistair Strang identifies the key price levels to watch in the days, weeks and months ahead.
Lloyds Banking Group's (LSE:LLOY) share price is currently exhibiting some tentative movements, perhaps teasing us of some good times ahead. Can we be confident?
If we continue to pretend optimism, apparently now above 45.55p should trigger a slow but steady share price recovery toward an initial 53.5p. Visually, this is a truly remarkable result and an ambition capable of running into the Blue downtrend since the heady days before the pandemic.
This sort of thing tends make the scenario believable but we’ve some doubts about our secondary calculation. We work out that should 53.5p be exceeded, a secondary of 57.3p can be conjured.
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Our worry about the secondary is it risks being quite game changing. It’s a high, higher than the previous high within the ruling downtrend, thus, in catchy market lingo, it’s an official “higher high”.
This allows us to cough politely and grudgingly admit the Big Picture now exerts a longer term attraction at a future 77p, a return to levels not seen since 2015 and a more innocent time.
Source: Trends and Targets. Past performance is not a guide to future performance
However, Lloyds need only trade below 43.3p to risk triggering reversals to an initial 40.5p. If broken, our secondary calculates at 37.3p, breaking the immediate uptrend and risking a visit to a longer term “bottom” at 28p.
The weight of movements against Lloyds' share price is extremely messy but fast approaching a point where some solid movements shall become inevitable. Unfortunately, we lack confidence as to direction currently.
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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