Which way might Lloyds Bank shares move this week?
According to our chartist, we could see some "un-Lloyds" behaviour in the days ahead.
20th July 2020 08:45
by Alistair Strang from Trends and Targets
According to our chartist, we could see some "un-Lloyds" behaviour in the days ahead.
Lloyds Banking Group (LSE:LLOY)
We're obviously devotees of "The Trend," but it is always important to pay attention to fundamentals too.
Often, it can be the case where internet chatrooms positively drool over a goose about to lay a golden egg, when a little bit of research will discover the goose is actually a very small male duck.
This is the reason we'll often give quite wide trigger parameters when disclosing trading scenario, in the hope if something actually happens, it's not the result of gossip but rather a trading position based on facts.
This, of course, brings us to Lloyds Banking Group (LSE:LLOY)!
According to "The Trend", Lloyds Bank's share price should make some sort of movement pretty soon as it's within days of colliding with the blue downtrend, presently at 32.345p.
The reason for movement is pretty basic, we're not the only folk capable of drawing a line and, should the price meander above the trend, it's liable to provoke some quite "un-Lloyds" behaviour.
Initially, we'd hope to witness traffic in the direction of an initial 34.5p with secondary, if exceeded, at 37p.
Visually, there's a reasonable expectation of the 37p level provoking some sort of hesitation, due to this ambition matching the level of a few prior highs.
Only with closure above the 37p level shall we feel (relatively) safe in believing things have changed with Lloyds' share price and some real optimism is permitted for the longer-term.
A word of caution as there's a risk the market may chose to play a little game with traders. In the event the share price is miraculously spiked above the blue downtrend in the opening second of trade in the days ahead, there's an enhanced risk of it being a "gotcha" ploy, one very capable of provoking reversals to an initial 28.25p with secondary calculating at a frightening 24p.
Regardless, it feels like Lloyds is about to make a movement in the week ahead. Fingers crossed it's in the correct direction.
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.
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.