Lloyds Share Price Trades Lower Today, But 24% Up from January 2019

Shares of the UK’s oldest bank Lloyds Banking Group, are presently trading 0.75% lower on the day, with the price as the time of writing registered at 62.68. The share price of Lloyds is however 24% up on the year, as investors try to define the direction that the bank will take in 2020 as it returns to full private control.

InvestingCube's S&R Levels

FTSE100

FTSE100 (7031)

In Profit

STOP

SELL

TP1

7146

TP2

7127

The UK government sold off a large chunk of its holdings in the bank on December 13 as it seeks to recover the capital it injected to save the bank from collapse during the 2008 global financial crisis. This sale puts the amount that the UK government has recovered from its £20.3bn bailout to £17.5bn and dropped Lloyds share price from around £73.63 per share to £64.13 per share. The rest of the 7% stake still owned by the UK government would be sold to the public over a year, according to plans laid out by the Chancellor of the Exchequer.

So with Lloyds about to head into 100% private ownership for the first time in 12 years, here’s the outlook for this stock.

Read our Best Trading Ideas for 2020.

Technical Outlook for Lloyds

Lloyds share price is about to test an ascending trendline which connects the daily lows of November 7 till date. A break of this trendline to the south opens the door for price to attain the downside targets at 61.87, 60.00 and 58.57. A 3% penetration close would actually take Lloyds shares below the first target at 61.87. Therefore, 60.00 would be the real target to chase initially, being the price level where lows were seen on Feb 27, May 10 and December 14, all in 2019.

To the upside, a break of the descending resistance trendline would allow Lloyds share price a chance at hitting upside targets at 63.97 and 65.74. However, a 3% penetration close would take out 63.97, leaving the 65.74 previous highs of March 18 and December 6 2019 as the next available target.

Don’t miss a beat! Follow us on Telegram and Twitter.

More content