Interactive Investor

How Lloyds Bank shares could gain 10% or more

14th June 2021 09:30

Alistair Strang from Trends and Targets

It's been a dull month for the share price, but there's a chance for decent gains if they close above this level.

It used to be the case that people would dream of counting sheep to send themselves to sleep. Sooner or later, “watching Lloyds Bank (LSE:LLOY)” must enter popular language as an economic method to combat insomnia.

When we previously reviewed Lloyds three weeks ago, we mentioned the 50p level as critical if price gains were to be expected. The share price has closed at 50p exactly on 2 June, enjoying an utterly boring trading range of just 2p within the period. It’s becoming clear the share price needs to actually close above the 50p level to make some price recovery fairly certain.

Closure above 50p remains pointing at the potential of an initial 55p with secondary, if exceeded, calculating at 57.85p.

The converse argument for reversal now triggers if the share price manages below 47.15p. This risks driving the price down to 45.25p initially. If broken, our secondary calculation and hopeful bottom works out at 43.5p.

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. 

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