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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.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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