Can Lloyds Bank shares stage a breakout?
Risks remain for the high street bank's long-suffering shareholders, but independent analyst Alistair Strang goes looking for signs that the rangebound shares can go higher.
13th November 2023 07:49
by Alistair Strang from Trends and Targets
Lloyds Banking Group (LSE:LLOY) continues to avoid giving investors anything approaching “a perfect moment”, their share price breaking our previous 40.1p target level, eventually bouncing unconvincingly from 39.5p.
Currently, any bounce needs to reach a little higher as it looks like the share now needs above 42.5p to hopefully trigger recovery to a tame 43.3p with our secondary, if this level is exceeded, calculating at 45p.
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The visuals certainly support a visit to the 45p level, but with closure around such a point, something significant is possible as the price will exceed the downtrend for 2023, dumping the price in a zone where a future attraction from 51.2p allegedly becomes possible.
It’s still the case we hope for the day when the market opts to gap this share price above a downtrend, as this should send a pretty solid message of future gains being anticipated. But for now, it appears destined to spend time fluttering around in the range from 40p to 50p.
Our alternate scenario is now the risk of weakness below 40p bringing the price back down to an initial 38.8p with secondary, if broken, at 35.5p, a price level from which a bounce would be ideal.
There’s a further danger should 35.5p break, as our “ultimate bottom” for Lloyds now calculates at 28.75p, this being the price level below which we cannot calculate.
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.
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