Lloyds Bank: should you go long?
The bank’s shares continue to plummet: is now the best time to buy? Our chartist looks at key movements.
3rd August 2020 09:01
by Alistair Strang from Trends and Targets
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The bank’s shares continue to plummet: is now the best time to buy? Our chartist looks at key movements.
Lloyds Bank (LSE:LLOY)
There’s probably a bunch of folk now declaring things like “Lloyds is cheap” and “Lloyds’ share price is a steal”.
At time of writing, the share is at 26.3p, a price level painfully distant from the 64p it started 2020 with.
Rather worse, it feels like there’s the potential for further relaxation ahead as weakness below 25.5p points at coming reversal to 24p with secondary, if broken, at a hopeful bottom of 21.25p or so.
This bottom level visually compares with the 21.6p low at the end of 2011, so this alone should serve to provoke a bounce.
In addition, this “bottom” target level calculates slightly above our ultimate drop level of 18p, again suggesting price reversals are finally in an end-game phase.
Perhaps there’s an oddball note worthy of mention, thanks to a couple of movements during the last three sessions.
In the event the market opts to gap Lloyds Banking Group's (LSE:LLOY) share price up above 29p in the coming week, there’s a heck of an argument favouring taking a long position, then waiting to see where it goes.
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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