The Lloyds Bank share price upward trend has continued this week as investors bet on the UK recovery and the firm’s efforts to cut costs. The LLOY share price is trading at 43.2p, which is the highest level since March last year.
What happened: Lloyds Bank is one of the biggest domestic banks in the UK. The company has the biggest market share in the mortgage industry. It is also a leading player in the card business. Therefore, since it does not have any major operations abroad, the bank is viewed as a proxy for the UK economy.
This week, the Lloyds share price has rallied as investors cheer the government’s rollout of the coronavirus vaccine and the imminent reopening. The country will become among the major countries to reopen. Therefore, the economy could remain vibrant in the near term.
Also, the company is doing well because of the cost-cutting measures it has put in place. This week, it was reported that the firm is dumping external advertising agencies for a new inhouse team. This is a major step considering that the firm spent more than 187 million in advertising last year.
Lloyds share price forecast
The daily chart shows that the Lloyds share price surged above the important resistance level at 40.80 this month. This was a notable level since it was the highest it has been since November 25. It has also formed an ascending channel that is shown in black. Indeed, the price is slightly below the upper side of this channel.
Therefore, with momentum building, the stock could continue rising as bulls target the next key resistance level at 50p. This will likely happen in April this year. However, a drop below 40p will invalidate this trend.
LLOY stock price chart