Lloyds Banking Group shares: new trigger levels to watch closely
The retail bank's rally has come unstuck, but what does it mean for future price potential?
11th June 2020 08:45
by Alistair Strang from Trends and Targets
Share on
The retail bank's rally has come unstuck, but what does it mean for future price potential?
In the last month, Lloyds Banking Group (LSE:LLOY) shares have once again failed to launch to the heavens, share price behaviour proving quite insipid when viewed against wider market (illogical) recovery.
While it's still the case the FTSE 100 needs above 6,750 to convince us that the recovery is real, in the case of Lloyds there's something a bit funny going on at 38.8p.
The immediate situation now suggests this share needs exceed 38.8p to trigger movement to 42.7p.
Obviously, this is not the most scintillating recovery but, from our perspective, it's a fairly big deal and provides the first solid indication the share price has bottomed.
Should 42.7p be exceeded, our secondary calculation works out at 48.2p and takes the share price into a zone where it's "game on" for some stronger future movements.
If the market plans real mischief, below red (presently 27p) will give ample concern, still signalling reversal to 22p initially with secondary, if broken, at 5p and a dip in the harbour.
Lloyds are a share we generally review monthly. During the current confused market, we're inclined to accelerate this and shall check up on Lloyds (or Barclays (LSE:BARC)) on a weekly basis.
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.
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.