Lloyds Share Price Is Barely Hanging On…Where Does Price Go From Here?
Lloyds share price opened with a downside gap this Monday but has traded mostly higher as banks and other organizations grapple with the impact of the coronavirus pandemic. With the recently introduced national lockdown set to last until March, the Financial Conduct Authority has scrapped the initial leeway it gave banks not to record the communication of bank workers who operated from alternative locations.
The FCA has now directed all UK banks whose workers are working remotely, to institute measures to control the working environment of such staff, and this is to include the recording of all work-related communication.
Lloyds and other UK banks are starting to see increased scrutiny from the BoE and FCA as a result of the lockdowns. Investors are also grappling with the fear of a possible move towards a negative-interest-rate environment, although the BoE has been quiet on this.
Lloyds share price is trading flat at the time of writing.
Technical Levels to Watch
Lloyds share price has formed a symmetrical triangle on the daily chart, with price very close to the point of convergence.
With Lloyds share price coming under pressure since the start of the new year, the bias is for a downside break which also needs to clear the 35.97 support. This move opens the door towards 34.77, with 33.09 and 32.10 lining up as potential downside targets.
On the flip side, a continuation of today’s bounce which pushes Lloyds share price above 37.02 and the triangle’s upper border, is necessary to confirm the upside break. This move allows bulls to target 38.26, with 39.53 and 40.66 serving as additional targets to the north.