Legal & General (LON: LGEN) share price has been in a continuous uptrend for the last two months. During this time, the stock price increased 26% and is now retesting a very critical level on the chart. Therefore, there is a high probability of a pullback in the coming days.
After an 8.47% rise in November, the Legal & General shares are up 7.5% in December. While the outlook appears to be very bullish, there could be at least a short-term correction from current levels. On Friday, the stock of the British financial giant closed at 246.4p which was their highest level since April 2023.
According to the latest news, JPMorgan remains upbeat on European insurance stocks like Aviva, Beazley, Hannover Re, and Legal & General. The investment giant has cited the peak yields, constant earnings growth, and no threat from peak pricing as the primary reasons behind this outlook.
With remarkable growth in the last two months, LON: LGEN has outperformed the FTSE 100 index, which is still struggling to break above its 7,685 points resistance level. However, the broader market sentiment remains positive despite a hawkish stance maintained by BOE in its recent meeting.
Technical analysis of the daily chart reveals that the price has been hovering within the 200p-300p trading range for almost the past 10 years. Currently, the stock is retesting the middle of this trading range, i.e., 245p, where also lies the 200-day moving average.
Another reason why the Legal & General share price forecast is looking bullish is a recent breakout from the downward trendline. However, for bullish confirmation the price still needs to break above 247.5p which is just 1 penny above the current price.
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