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LLoyds Share Price Could Surpass 40 Pounds On Dividend Optimism

FTSE 100
FTSE 100

Lloyds’ share price has struck a good upside chord this Monday, gaining 0.92% in the 1st trading day of the new month.

The positive start to the month appears to have come from investors’ comfort over the latest dividend payment of 57p. In a letter to shareholders, the Lloyds Bank management explained that the dividend payment was the maximum allowed by regulators, given that the yield on the current Lloyds share price stood at 1.5%.

The tone? The bank is still in a strong capital position and could have paid out more if the Bank of England had allowed it. 

Lloyds Bank delivered a profit-after-tax of £1.4bn, with net income of £14.4bn and a CET1 ratio of 16.2% (bank target was 12.5%) in a full-year earnings result that CEO António Horta-Osório called a resilient performance in a challenging environment. 

Lloyds’ share price is trading at 39.365 currently. 

Technical Levels to Watch 

Lloyds’ share price is currently challenging the resistance at 39.530. The price needs to breach this resistance with a 3% penetration, which takes the active candle above the high of Friday’s candle and sets the stage for the attainment of 40.660. Above this level, 41.555 is the next available target for buyers, if the price can break beyond the 40.66 resistance and the high of Wednesday, February 25. This move would set a higher high required for the continuation of the recovery. 

On the flip side, a rejection and pullback at 39.530 allow for a retest of 38.260, with 37.02 (18/19 February lows) forming an additional target to the south. This move would require a break of the 

ascending support trendline. 

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Lloyds Share Price; Daily Chart

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