Lloyds Bank: onwards and upwards for the share price?
The bank’s once-stagnating share price could be set for greater things.
24th May 2021 08:58
by Alistair Strang from Trends and Targets
Share on
The bank’s once-stagnating share price could be set for greater things.
Lloyds Bank
The share price of Lloyds Banking Group (LSE:LLOY) has grown by 8p since the middle of February.
We'd be churlish if we didn't admit this 20% improvement in price reflects well against FTSE 100 performance. In the same period, the UK index has only recovered by 10%, still lagging a country mile below the pre-Covid-19 high level of 7,500 points.
Such is the disappointing pace of movement, we're inclined to allocate 50p as the next trigger level for the share. The situation now suggests that movements above 50p shall make movement toward an initial 55p almost inevitable.
- UK retail banks start to outshine their European rivals
- Most-bought investments: April 2021
- Why reading charts can help you become a better investor
If bettered, our longer-term secondary calculates at 58.3p, an ambition which neatly matches the share price prior to the pandemic kicking everything into the gutter.
It's now the case that the Lloyds Bank share price needs to close a session below 44p to cause panic, risking entering a zone where reversal to a bottom of 34p looks very possible.
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.