Lloyds share price closed lower for the ninth week in a row last week on coronavirus concerns. The UK lender’s stock was down 9.30% for the week as it finished trading at 50.20. As of this writing, Lloyds share price is down 0.06% at trading at 50.26 for this week.
Concerns about Brexit may have weighed down the stock yesterday as it incurred a 1.31% loss. A few EU officials warned that negotiations with the UK may break down if the two sides cannot agree on their differences. As it is, Brexit has already posted challenges to the lender. In February, it reported a drop in its annualized profit and an uptick in its bad debt portfolio. The thought of a no-deal Brexit likely spooked investors out of the stock because the scenario only poses more challenges moving forward.
Read our Best Trading Ideas for 2020.
Lloyds Share Price Outlook
On the monthly chart, we can see that the Lloyds share price is currently testing a major support level. The stock has previously bottomed in the area around the 48.00 psychological handle. It served as support on February 2010, July 2016, and August 2019. If the candlestick for March closes as a reversal candle, it could mean that Lloyds share price will soon be on its way to resistance at the falling trend line at 62.40 (when you connect the highs of April 2017, December 2017, March 2019, and December 2019).
On the other hand, a strong bearish close below February’s low at 47.88 could mean that Lloyds share price is headed lower. The next support could be around 30.00 where the stock bottomed on November 2011 and July 2012.