Lloyds (LON: LLOY) share price is showing signs of recovery after tanking for four consecutive days. The chart also shows that the price has found support around the June low of $42. The shares for the British bank are changing hands at 42.1, up 0.27% till press time.
The FTSE100, which consists of the top 100 companies listed on the London Stock Exchange, lost 37 points on Monday. The UK services PMI was also announced today, which showed that the business activity in the UK services sector fell in August. This further put downward pressure on London stocks on Tuesday.
Lloyds Completes Its Buy-Back Programme
On 25th August, the management of Lloyd announced they had completed the 2.5 billion share buyback program. The British lender started this move back in February as it aimed to purchase 4.3 billion shares. The repurchasing of shares was managed by the London branch of UBS.
On 25th July, Lloyd’s published their earnings report. It revealed a pre-tax profit of £3.9 billion, which was below the expected figure of £4 billion. The net interest margin also declined to 3.14% from 3.22% in the first quarter. The bank expects the margin to decline further in the coming months, which is a major reason behind the downtrend in Lloyds share price.
Lloyd Share Price Consolidates At June Lows
The price chart for LON: LLOY shows the price consolidating near $41, which is the June low. The chart also shows the price trading below the 44.6p neckline of the head & shoulders pattern. Currently, the shares stand 7% below the neckline of the bearish pattern.
It is critical for the price to hold the June low as support for the bulls to aim for any reversal. Lloyds share price forecast will flip bearish if the price breaks below the June low of 41p. In that case, I expect a 7.4% correction towards the 38.5p support level.
In the meantime, I’ll keep sharing the updated Lloyds stock forecast and my personal trades on my Twitter, where you are welcome to follow me.
