Lloyds Share Price Aims For A Retest Of 50p But There’s A Catch
Lloyds (LON: LLOY) share price is rising steadily as the shares of the British bank gain strength. The shares of the black horse bank have risen above a key resistance level as well as the 200-daily moving average. However, at least a short-term pullback seems to be on the cards to flip 44.65p resistance into a support level.
During Wednesday’s trading session, Lloyds shares rose 0.62% and closed the day at 46.18p. In the coming days, the shares may retest the July 2023 peak of 47.13p. However, the border market sentiment will play a key role in this regard.
On Thursday, the Bank of England (BOE) and the European Central Bank (ECB) will make their interest rate decisions which might impact equity prices in general and bank stocks in particular. These meetings will follow the FOMC statement of the US which will be released later today.
Due to expected changes in the monetary policies in multiple jurisdictions, Lloyds share price may face increased volatility in the coming days. Another thing worth mentioning here is the fact that analysts expect BOE to cut rates later than its US and European counterparts as the UK inflation still remains at 4.6%.
The chart above reveals the key levels that LON: LLOY has been respecting since the start of this year. After a breakout above 44.65p resistance, a retest of the 50p level appears to be the most likely scenario. However, this Lloyds share price forecast will depend on a clear break above the 47.13p level.
In case of a breakdown, the 44.65p resistance might act as a support, but there could be a bounce from this level. The bearish divergences on the Relative Strength Index (RSI) and the Money Flow Index (MFI) suggest that further upside could be limited before a correction.
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