Interactive Investor

An urgent update on Brent crude and Lloyds Bank

29th November 2021 07:36

Alistair Strang from Trends and Targets

After last week's market crash, independent analyst Alistair Strang studies two popular trades and whether recent price moves give clues as to future direction.

Last time we reviewed Brent crude, we had a note of caution if the product managed to reverse below $77. It closed Friday at $72, a price level what should scare the government who are doubtless feeling Christmas has come early while they scalp 20% VAT from the cost of fuel.

Things now risk becoming interesting as weakness next below just $71 a barrel calculates with the potential of reversal to an initial $68. If broken, the stuff should ideally bottom at $61.

There is a little concern, thanks to crude breaking the uptrend since the dire lows of 2020, as the price is already residing in a zone where we must regard $43 as a potential bottom in the fullness of time. The black stuff only needs to bubble above $75 to spoil these potentials.

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

Lloyds Bank

Continuing to wobble around, doing nothing useful, Lloyds Banking Group (LSE:LLOY) shares took the opportunity of Friday's market reversals to plunge to the 46p level, as mentioned in our report three weeks ago.

Proving interesting, the low of the day somehow managed to collide rather exactly with the red uptrend on the chart, perhaps implying a rebound should be anticipated. The implication now is of weakness below 45.4p calculating with the risk of reversal to 44.6pp with secondary, if broken, at a visually less likely 40.5p.

If a miracle rebound indeed takes place, above 47.5p should bring the potential of travel to 49.2p. If bettered, we can work out a secondary at 50.5p, along with some possible hesitation.

However, should the market discover an excuse to “gap” Lloyds share price up by more than a penny anytime soon, the share has sufficient ammunition to provide substantial rates of movement as 60p and beyond should come within reach.

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. 

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