Jump to content

Lloyds looking technically bullish ahead of full-year results


MongiIG

Recommended Posts

A potential bullish reversal is taking shape in the Lloyds share price ahead of Thursday’s full-year results.

BG_lloyds_bank_987987844.jpgSource: Bloomberg
 Axel Rudolph | Market Analyst, London | Publication date: Wednesday 23 February 2022 

Lloyds Banking Group, the UK’s largest mortgage lender, is bouncing off key support and looks technically bullish ahead of Thursday’s full-year (FY) results.

The banking group, which consists of the Bank of Scotland, Halifax and Scottish Widows amongst others, is widely regarded as a good proxy for the UK economy because of its 30 million customers and exposure to British consumers.

According to Reuters, Lloyds Banking Group is expected to show profits surging to £7.2 billion, up from £1.2 billion in 2020, as the bank benefited from the release of some of its £4.2 billion in loan provisions, set aside in 2020. Figures should be boosted by lower charges for bad debt, as borrower defaults proved lower than anticipated, and by increased mortgage borrowing in the wake of the UK economy bouncing back in 2021.

The Lloyds share price may be further boosted when the new CEO, Charlie Nunn, will lay out his strategy for the retail lending giant and explain where he sees future growth areas.

23022022_LLOY-Weekly.pngSource: ProRealTime

 

Last year’s share price rise of some +35% came on the back of the bank benefitting from the boom in mortgage lending seen during the pandemic, but this may soon diminish as UK interest rates rise in the face steep energy and consumer price rises.

From a technical perspective the fact that the stock bounced off its late January low at 49.25 pence shows that despite ongoing geopolitical tensions between Russia, Ukraine and the West, provoking the recent sell-off, buyers remain in control.

23022022_LLOY-Daily.pngSource: ProRealTime

 

Therefore, provided that the late January and February lows hold, the odds favour an eventual advance to above the 55.96p January high unfolding.

First the two-month resistance line at 53.25p will need to be exceeded, and then the early and mid-February highs at 53.96p to 54.50p.

23022022_LLOY-Monthly.pngSource: ProRealTime

 

Above this year’s high lurks the 58p to 63p region which has been capping the share price since 2016 and should prove difficult to overcome.

Failure at the 49.25p to 49.11p recent lows would negate the bullish outlook, and instead lead to the 200-day simple moving average (SMA) and 2020 to 2022 uptrend line at around 47.75p being revisited.

Further down the December trough can be spotted at 44.31p.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      22,140
    • Total Posts
      93,025
    • Total Members
      42,524
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    JohnM
    Joined 07/06/23 03:55
  • Posts

    • Dear @Dan_SB, You have the option to add a trailing stop on the deal ticket just like setting a regular stop. To do this, you will need to specify both the stop distance, which is the same as a normal stop and the trailing step. Here are the steps to add a trailing stop on the deal ticket: 1. Click on the drop-down menu under ‘stop’ 2. Select ’trailing’ 3. Enter your stop and trailing step where prompted. Enter your stop and trailing step where prompted NB: The trailing stop option will not be available on the deal ticket if you are placing a working order. All the best, AshishIG Take a quick poll and vote
    • Elliott Wave Analysis TradingLounge Daily Chart, 7 June 23,   Bitcoin/U.S.dollar(BTCUSD) BTCUSD Elliott Wave Technical Analysis Function: Reactionary(Counter Trend) Mode: Corrective Structure: Double Corrective Position: Wave(Y) Direction Next higher Degrees: wave ((2)) of Motive Details: Wave ((2)) is likely to end at 25354.69. A five-wave rise will confirm this idea. Wave Cancel invalid level: 25354.69. Bitcoin/U.S. dollar (BTCUSD)Trading Strategy: Bitcoin has recovered well from the 25354.69. level and can still hold above the MA200 line, leading us to expect Wave 2 to end at 25354.69. , the price is returning to an upward trend, and a five-wave rise will support this idea. Bitcoin/U.S. dollar (BTCUSD)Technical Indicators: The price is above the MA200 indicating an Uptrend, Wave Oscillator has a Bullish Divergence. TradingLounge Analyst: Kittiampon Somboonsod, CEWA Source : Tradinglounge.com get trial here!   Elliott Wave Analysis TradingLounge 4H Chart, 7 June 23,   Bitcoin/U.S.dollar(BTCUSD) BTCUSD Elliott Wave Technical Analysis Function: Reactionary(Counter Trend) Mode: Corrective Structure: Double Corrective Position: Wave(Y) Direction Next higher Degrees: wave ((2)) of Motive Details: Wave ((2)) is likely to end at 25354.69. A five-wave rise will confirm this idea. Wave Cancel invalid level: 25354.69. Bitcoin/U.S. dollar (BTCUSD)Trading Strategy: Bitcoin has recovered well from 25354.69, but has yet to break the MA200 completely. We expect Wave 2 to end at 25354.69. Price is returning to an upward trend. And a five-wave increment would support this idea. But even so, one has to be wary of a correction of wave 2 on smaller scales. Bitcoin/U.S. dollar (BTCUSD)Technical Indicators: The price is below the MA200 indicating a Down Trend, Wave Oscillator is Bearish momentum.
    • Commodity Market Technical Analysis Elliott Wave and Trading Strategies Content: US Bond Yields, USDJPY, EURUSD, AUDUSD,Dollar DXY, US Gold, GDX, Silver, Copper, Iron Ore, Lithium, Nickel, Crude Oil, Natural Gas. Commodities Market Summary: The USD DXY is pushing higher into Wave v) of C of (2) while precious and base metals are doing the opposite Trading Strategies: No strategies Video Chapters 00:00  US Gov Bonds 10 Yr Yields 01:34 US Dollar Index DXY USDJPY, EURUSD, AUDUSD 14:13 Spot Gold /  GDX ETF 18:47 US Spot Silver 20:39 US Copper / Lithium / Nickel / Iron Ore 37:51 Crude Oil  40:30 Natural Gas  46:50 End Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com  Access Trial here... buy 1 month Get 3 months       
×
×
  • Create New...