Lloyds Banking Group (LLOY) is under selling pressure today as does the FTSE 100 index amid rising concerns over the second wave of coronavirus infections. Lloyds is 57% lower since the high from December 13, 2019. Although it managed to rebound from the March lows after the coronavirus crisis sell-off the share rejected below the 100-day moving average, while the correction finds support at the 50-day moving average.
As the discussion around negative interest rates is still intact, the UK Banking sector will be pressured. Lloyds and the other major banks will not pay any dividend until the end of 2020 after the BOE decision, so Lloyds key capital ratios are expected to improve in the upcoming quarters.
Lloyds and the economy are still facing the risk of a second coronavirus wave that will halt the recovery and might send Lloyds share price to March lows.
Lloyds is 1.94% lower at 31.62 today as the correction from the recent highs continues. The correction, for now, has stalled at the 50-day moving average. While a break lower might initiate a new round of selling pressure. The long term picture is bearish as long as the Lloyds share price trades below the 100-day moving average.
On the downside, initial t support for Lloyds share is at 31.50 the daily low. The 50-day moving average at 31.34 will provide the next support zone. If bears break that support zone, then the next level to watch is at 30.23 the low from June 15.
On the other side, immediate resistance for Lloyds share is at 32.21 the daily top. Next supply zone for LLOY will be met at 33.17 the high from June 18. If the price breaks that hurdle, the next target is at 38.41 the 100-day moving average.