Lloyds’ share price continues the corrective decline this Friday as the stock responds to last week’s plan by the Bank of England to deliver comprehensive stress tests.
These stress tests are the first of their kind and aim to measure the British financial system’s ability to cope with climate change.
Despite the BoE’s promise not to use the outcome to set capital requirements in the near term, the bank’s investors were spooked and offloaded their holdings, sending Lloyds’ share price lower for the 2nd week in a row.
BoE Chief Andrew Bailey said the end-point would be to have a financial system that robustly manages financial risks that arise from climate change.
Lloyds’ share price is down 2.38% on the day.
Technical Levels to Watch
The daily chart for Lloyds share price shows that the breakdown of the rising wedge pattern is still in progress, with 46.615 looking to be the next target for the bears. Further decline in the Lloyds share price opens the door towards 44.990, with 43.845 and 42.995 also serving as additional targets to the south.
On the flip side, a recovery bounce on the 46.615 support allows the stock to push towards 48.125 or 49.205, at which points selling may resume. A break above 50.435 signals the end of the breakdown move and a return to the uptrend. This move then puts out 52.095 as the next target in line.