Interactive Investor

Can Lloyds Bank shares break out from three-year range?

As the high street lender's share price trades at the top of a range that can be traced back to 2021, independent analyst Alistair Strang looks for signs it can break out.

13th May 2024 07:48

by Alistair Strang from Trends and Targets

Share on

Lloyds bank 600

When we reviewed the Lloyds Banking Group (LSE:LLOY)s share price three weeks ago, we commented on an ideal situation where the market would opt to “gap” the share price up above 54.1p.

Unfortunately, while the share price is now trading around such a level, we haven’t witnessed the potential excitement of a manipulation gap and, thus, we’re not entirely primed for fireworks from the share price in the immediate future. Instead, it starts to feel like price movements shall be quite sober and grown up.

Now above 54.5p looks pretty certain to attempt a visit to an initial 55.8p with our longer-term secondary, if bettered, calculating at 58p.

Overall, on this cycle, we anticipate a third level at 60.4p as being able to provoke some hesitation in a climbing cycle, demanding some deep thought for the future, unless the market starts gapping the share price up at the open firstly.

If things intend to go wrong, below 52.1p shall ring the first alarm bell for us, suggesting the risk of pushing reversal down to an initial 49.3 with our longer-term secondary, if broken, calculating at a future 45p. With share prices movements during May, it feels like it will require a pretty firm political will to cause trouble for the retail banks.


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. 

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

Get more news and expert articles direct to your inbox