Lloyds Share Price Outlook: A Correction Before Continued Recovery is Likely

Lloyds share price could not hold on to initial gains on Monday, as sellers re-entered the fray following a steep fall on Friday. Prices fell 1.67% on Friday and are presently only a tad higher as investors try to shed off the negative sentiment following the network outage that hit its banking platforms last week. 

Deutsche Bank provided a positive outlook for the stock, saying that the UK’s biggest lender was returning to normalcy after better-than-expected results were released nearly two weeks ago. Goldman Sachs also believes the stock will continue to recover. Both banks upgraded their price targets, with Goldman Sachs favouring a return to 55p even though it retained its neutral recommendation. 

The average target price still leaves some upside room for the stock at current prices. However, the price picture suggests there may be a correction before prices take off.

Lloyds Share Price Outlook

The progressively lower highs on the daily chart point to a stall in the uptrend. The downside bias is reinforced by today’s price candle, a pinbar whose closing price is so far below the 49.205 support. If the price closes at the current levels or lower, the time filter conditions for breakdown confirmation will be met. This opens the door for the price to track lower, targeting 48.125 initially before 46.615 and 44.99 come into the mix. The 200-day moving average will interact with the latter to reinforce this price pivot.

On the other hand, a price close above 49.205 puts off the downside break. If the bulls initiate a bounce here, then 50.435 becomes the target to the north in the near term. A continued advance targets 51.02 (17 November high), with 52.095 forming a barrier to the north whose attainment brings the Lloyds share price to new 2021 highs.

Lloyds Shares: Daily Price

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