Can Lloyds Share Price Push Towards 40p Mark On New Home Ownership Proposal?
Lloyds share price is up today after an announcement by UK Prime Minister Boris Johnson of a new homeowners scheme, “Generation Buy”. The scheme is targeted at young first-time home buyers and aims to get 95% of mortgages at just 5% deposit to encourage young home renters to buy their own homes.
The plan aims to create more than 2 million new homeowners in an attempt to fix what the UK PM calls the UK’s “broken housing market”. However, the plan was short on details as to how the long-term mortgages would function. It was also not clear as to whether the UK government would insure the proposed scheme, which could require tens of billions of pounds of guarantees.
The announcement is coming barely a week after the Bank of England said it would seek to end unfair advantages that certain banks in the UK have in terms of how much capital is used to hold mortgages.
Lloyds share price is up 3.6% on the day and currently trades at 27.955.
Technical Outlook for Lloyds Share Price
Today’s upside on Lloyds share price has breached the 27.470 resistance but finds further upside limited by the channel’s return line. For the move towards 29.765 to be confirmed, two consecutive daily candles must close above the channel’s return line. 31.250 and 32.950 are also potential targets to the upside if aggressive buying is seen on the stock.
Conversely, failure to break the channel’s return border could allow for price oscillation that aims to return the price to the channel’s trendline. This move would have to contend with the 25.875 and 24.745 support levels, and a move towards 21.665 would have to break below the channel’s trendline as well as the 22.700 support level.