Interactive Investor

Lloyds Bank shares: this will increase confidence in price recovery

Lloyds shares continues to 'antisocially distance' from investors and traders, but things could change.

7th July 2020 08:32

Alistair Strang from Trends and Targets

Lloyds shares continues to 'antisocially distance' from investors and traders, but things could change.

Lloyds Bank (LSE:LLOY) 

Despite lockdown easing, Lloyds Banking Group's (LSE:LLOY) share price continues to 'antisocially distance' itself from investors and traders, carefully walking a path of movement which accomplishes nothing.

Circled on the chart is absolutely nothing, an area which shall hopefully provide a reason to discuss price moves.
 
We've little doubt the market is watching the blue line on the chart, presently suggesting the price needs to exceed roughly 34.582p to suggest a "breakout", screaming of good times ahead. Or at least, some price recovery.

This blue line declines at a rate of 0.17p per day, which hints it may be another 19 days before blue becomes an issue in the highly unlikely event that the share price remains at its present 31.205p.
 
Working on the basis that most sane folk skipped the preceding paragraph, what do we think is coming?
 
It will not surprise us in the slightest if the market finds a reason to "gap" the share price above this downtrend anytime soon, ideally into the circled area of the chart.

This will carry a subliminal implication we are watching the start of some price recovery, presumably unless the famed Covid-19 second wave appears.

As a result, moves above 'blue' shall be regarded as triggering recovery to an initial 42p with secondary, if bettered, still at 48p.

There's even the hope that drooling optimism could propel the share price even higher, potentially to 58p where some hesitation becomes almost certain.

Lloyds' share price requires a break of the red line on the chart, currently at 27.5p, to suggest reason for real concern as a drift down to 24p with secondary 18p remains possible.
 
Next week, it's the turn of Barclays (LSE:BARC) for analysis, but we may opt for RBS (LSE:RBS) instead, just to try something different in the retail bank sector.

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. 

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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