Can things heat up at Lloyds Bank?
Independent analyst Alistair Strang runs the charts for this high street lender.
27th August 2024 09:32
by Alistair Strang from Trends and Targets
Share on
For Lloyds Banking Group (LSE:LLOY), things still look capable of heating up.
One of our favourite “charty” signals is given when a share price exceeds the level of a prior trend break. Lloyds managed this exquisite trick on 15 August, when the share price managed to exceed 57p, usually a pretty certain signal of imminent gains.
- Invest with ii: Top UK Shares | Share Tips & Ideas | Cashback Offers
To double up on the potential, Lloyds also exhibited a Gap Down/Gap Up manoeuvre earlier in August, something we always think of as being a precursor for positive movement.
Both these little signals do produce a little problem, essentially a risk of the share price gains running out at 61.8p or so.
Source: Trends and Targets. Past performance is not a guide to future performance.
For Lloyds, closure above 61.8p should now be quite significant, literally to the point of being game changing, as it will signal a complete change in the share price behaviour.
Such an event calculates with the potential of a lift to an initial 68.5p with our longer-term secondary, if bettered, calculating at 71.9p and a price level where some hesitation can be anticipated.
If some trouble is scheduled, the share price now needs below 55p to risk problems, working out with the potential of reversal to an initial 51p with our secondary, if broken, at 47p.
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.