Lloyds Banking Group: are we about to see a turnaround?

The retail banking sector is now not looking so bad. Our chartist looks for potential upside movements.

Lloyds Bank (LSE:LLOY) 

It's unusual to be starting a month feeling like some hope is possible for banking shares. 

Obvious, the state of Mr Trump’s health is capable of knocking over the applecart for the markets, but otherwise the retail banks no longer looks as vile as usual. 

In fact, Lloyds Banking Group (LSE:LLOY) - as hoped - appears to be bouncing back just above our previous target drop level. Is it real?

At time of writing, Lloyds Bank’s share price is around the 27p level. We've allocated 29.6p as the potential trigger level for ‘proper’ recovery commencing, so it's not far away. 

Our thinking is pretty basic on this matter. Above 29.6p shall tend to suggest the bottom, with the result that further twitches upward should prove difficult to unwind, unless either the tone of company news or the efforts of politicians become involved. 

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Or we could all catch Covid-19, in which case the fate of a bank’s share price will doubtless become less interesting!

If our reading of the tea leaves proves correct again, above 29.6p anytime soon should prove price recovery to an initial 33p with secondary, if exceeded, a more interesting 35.5p. We've allocated 35.5p with special powers, thanks to closure above this point launching the bank’s share price into a region with a hypnotic attraction coming from the 50p level eventually. 

We can, of course, calculate beyond such a price level. But to retain a grasp of reality we'd prefer running the numbers again, as the path to such a target level, if achieved, is liable to provide some fairly concise cues for longer-term price behaviour.

For the immediate future we suspect we are in the same camp as the rest of the world. 

News of Mr Trump’s health was delayed until the markets closed on Friday with the result that we're a little concerned as to what the coming week holds. 

Should Lloyds’ share price experience reversal below 25.5p, this will give concerns as it once again implies the risk of a bottom at 22.3p. If broken, secondary is at 18p.

Hopefully optimism remains viable as, goodness knows, we all could do with something looking positive!

Source: Trends and Targets      Past performance is not a guide to future performance