The Lloyds share price popped and then retreated yesterday after the bank delivered mixed earnings. The shares rose to a high of 41.00p and then dropped by 6.4% to 38.40p and then closed near its Tuesday’s close at 39.3p.
Lloyds Bank news: The biggest UK bank was in the spotlight yesterday as it delivered its fourth-quarter and full-year results. The company made a pretax profit of 792 million pounds mostly because of the strong housing sector.
The bank also joined Barclays in setting aside 4.2 billion pounds in provisions in 2020 and then relaunched its dividend. Still, like Barclays and NatWest, the bank’s provisions in the fourth quarter were smaller than previously expected.
Looking ahead, there are concerns about whether the housing market will continue firing on all cylinders as government subsidies wane. These concerns are partially offset by the fact that the economy could rebound faster as the government implements the vaccination process. Also, some analysts believe that the recent provisions will play to the bank’s advantage. This is because these provisions have been recognized because of the recent IFRS standards.
Lloyds share price forecast
The hourly chart shows that the LLOY share price dropped yesterday after opening substantially higher. The lowest point yesterday was along the lower line of the ascending channel on the hourly chart.
Similarly, the highest point was also on the upper side of this channel. Also, the price has moved slightly above the middle line of the Bollinger Bands. Therefore, while the outlook is neutral, the price will likely continue rising as investors attempt to retest yesterday’s high of 41.00p.