Skip to content

Lloyds share price – more to come?

Lloyds share price – more to come?

Lloyds shares are creating plenty of enthusiasm at the moment. They are back above 68p and are trading at levels last seen three months ago.The shares were trading at 68.96 at time of writing, and seemed to be on a bullish run.



Lloyds share price – the technical outlook

Looking at Lloyds stock from a technical perspective, this is an extension of the bullish turnaround we saw yesterday for Lloyds shares, as the bank seems to be shrugging off some of the dark PPI clouds that have been clustered around it.

According to Michael van Dulken, Head of Research at Accendo Markets, Lloyds shares have bounced off the 50 day moving average (MA) and above the intersecting falling highs resistance and September highs.

Lloyds Share Price

Van Dulken also points out that the daily RSI is holding the upper half of its range and is also bullish, as it is a reversal on its Point and Figure chart.

Bullish investors in Lloyds shares are hoping this opens the door for a recovery to both the 70p mark and potentially even 2017 highs of 73p. Bears, on the other hand, are hoping for a pullback to 68p or lower, that would result in a retrace towards a rising support of 65.5p.

Lloyds share price could benefit from interest rate rise

It was not all plain sailing for the Lloyds share price, as the bank’s latest earnings statement was felt to be disappointing. Investors are also concerned that new banking regulations will force it to put more money aside to maintain enhanced capital requirements.

The strong prospects for a UK base rate rise is also expected to be good news for the Lloyds share price and some of that optimism may be being priced in already. Concerns still swirl around the levels of consumer indebtedness in the UK, particularly areas like car finance, where Lloyds Bank is strong but where there could be the possibility of higher levels of consumer debt default.

Analysts seemed pleased with the numbers Lloyds disclosed on PPI insurance claims: despite a government campaign announcing a final deadline for PPI claims, the rise in activity has not been as fierce or as severe as one would expect. This may be because many claims have already been processed.

Share this article

Invest with these platforms

Hargreaves Lansdown

IG

Interactive Brokers

Interactive Investor

Charles Stanley

IG

Interactive Brokers

Charles Stanley

Looking for great investing ideas? Get our free newsletter.
Join our UK news channel on WhatsApp

This article does not constitute investment advice.  Do your own research or consult a professional advisor.

Learn with our free 'How to' Guides

Our latest in-depth company reports

On the podcast

Sign up for great investing stock tips

Thanks to our Site Partners

Our partners are established, regulated businesses and we are grateful for their support.

Aquis
CME Group
FP Markets
Pepperstone
Schroders

abrdn
WisdomTree
ARK
FxPro
CMC Markets
Back To Top