Lloyd’s share price closed yesterday’s trading session with a drop of 2%. The drop was a continuation of the past three trading sessions that have seen the share price drop by 6 per cent.
The current drop, however, is not surprising. Throughout the year, Lloyd’s share price has been in an aggressive bearish trend, which has seen its prices fall by 21 per cent year-to-date. This is despite the rising interest rates that would have increased the company’s profit margins.
However, part of the reason we are seeing a bearish trend in the markets is that current market conditions, such as high inflation rates, have seen consumers cut down on their loan-taking activities. As a result, investors have also become cautious, and the results have been decreasing share prices for the company.
Lloyds, which is sometimes seen as a barometer for the UK economy due to its high market share in major UK industries such as consumer lending, mortgages, and business lending, may also be impacted by the current reports of the contraction of the UK economy. According to reports, the UK economy shrunk by 0.3 per cent in April. The country also missed the forecast by 0.1 per cent, which likely contributed to the current downtrend of Lloyds.
Lloyds Share Price Prediction
Yesterday’s 2 per cent price drop will likely continue in the next few trading sessions. There is a high likelihood that the current 42p price level will continue its downward trend. Therefore, my Lloyd share price prediction expects the prices to trade below the 40p price level in the next few trading sessions. I also expect the current bearish trend to continue.
If the current market conditions, such as high inflation and a falling British pound against the dollar, do not improve, then there is a high likelihood of prices trading below the 35p price level. However, if the market conditions improve, we may see Lloyds start to recover and trade above the 45p price level. As a result, it will also invalidate my strong bearish move analysis.
Lloyds Daily Chart
