Lloyd share price is back in focus today as investors focus on the outlook for the banking sector once the government-backed loan schemes come to an end in the 4th quarter of 2020. More than $91 million has been lent to businesses under these in extra financing using loans guaranteed by the government.
The end of these schemes could prove to be a critical test of the lending capacity of some of the UK’s top banks such as the Lloyds Banking Group. The bank was forced to take a heavy loss in the second quarter of 2020, much of it in bad debt. Loan losses for the top 5 UK banks have been estimated to be in the region of $22 billion.
Technical Outlook for Lloyds Share Price
Lloyds share price is trading at 28.595, or 1.24% lower and is looking to hit a 3-day losing streak. However, today’s candle has formed a higher low from Friday’s low, which could be an indication that downside pressure has started to thin out. However, the immediate support rests at 27.47. A breakdown of this level opens the door towards the 25.87 support, with 24.75 and 22.70 forming the next downside targets.
On the flip side, a bounce on the 27.47 support could provide the momentum for an attack on the 29.76 resistance. A breakout from there allows the July 13 and 21 highs at 31.25 price level, with 32.95 and 34.77 (30 April high) lining up to form the potential upside targets.
Lloyds Share Price Chart (daily)