Lloyds now looking to test resistance at 63

share trading
Lloyds Bank plc

Something a bit different for this post.  I was asked to comment on the current share price for Lloyds Bank plc.  Lloyds is a UK bank whose share price has been decimated since the start of the financial crisis.  Great shame because pre crisis they paid some of the best dividends.

The all time high for the share was 546.17 posted in 1998.   At the time of the financial crisis in 2008 the shares were trading at just under 300.  Following the banking crisis they fell to an all time low of 17p in 2009.

Since this low the shares have meandered along and on the weekly have now finally broken above the 200 ma.  This strong technical picture also received a boost from the isolated pivot low of two weeks ago in the 49.55 area which has given the share some additional momentum.

Moving to our other indicators, buying volumes in both our time frames remain firmly bullish, and with both trends also green and fully supported by a green heat map for LLoyds is firmly positive in the short term.  However, in the medium term a deep area of price resistance now awaits which extends from 63 up to 70 and this may cause a temporary pause in any further upwards momentum.  A clean break and hold above 70 will see the share price continue higher in the longer term.

By Anna Coulling

 

About Anna 1036 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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