Lloyds Share Price Slides, Then Recovers on Exporter Finance Plan
After opening the day sharply lower, Lloyds share price on the daily chart has bounced strongly off session lows, following the report of a new financial scheme for small and medium exporters to be handled by Lloyds Banking Group and three other banks.
The UK Export Finance has initiated a scheme to provide financial assistance to small and medium exporters. This scheme would involve providing loans, bonds, and letters of credit to defray exporting costs of up to 25 million pounds. The UK government will provide an 80% guarantee for these credit facilities, which will be disbursed via Lloyds Banking Group, Natwest, HSBC and Barclays.
Lloyds’ share price is down 2.11% at the time of writing but is well off session lows at 36.82.
Technical Levels to Watch
Lloyds share price found support at the 37.02 price level and bounced off this level, allowing it to retest the 38.26 resistance level, which was violated earlier today. If Lloyds’ share price stays above this price level, this will form a hammer candle that may allow for a bullish push towards the 25 November high of 40.66. This move would have to take out the resistance at 39.53 (recent highs of 24 November and 3 December) for bulls to attain this target.
On the other hand, failure to stay above the 38.26 price level completes one half of the time filter required to confirm a breakdown of that level. Confirmation opens the door towards today’s intraday lows, with 35.97 and 34.77 forming additional targets to the south.