Lloyds (LON: LLOY) share price is close to having another red week after wiping off most of its weekly gains. After a positive price action on Tuesday, the shares had two consecutive red days. On Friday, the stock of Lloyds Banking Group turned red once again.
Till press time, Lloyds shares were trading at 45.82p after a 0.12% decline during today’s trading session. Shares of other banks showed strength during the last trading session of the week as Barclays, NatWest, and HSCS shares outperformed Lloyds.
LON: LLOY Tumbles Despite Earnings Beating Estimates
In its latest earnings report, Lloyds Banking Groups recorded a 46% surge in its pre-tax profits for Q1 2023. The exact reported figure was £2.3bn which was well above the analyst estimates of £2bn. In the previous quarter, the Banking giant had reported a £1.5bn pre-tax profit.
Despite a profit boost by high-interest rates in the country, Lloyds share price still reacted negatively to the Q1 financial results. The shares also remain unfazed by the recent 25 bps rate hike by the Bank of England. This shows that investors are still cautious about investing in Banks amid a developing crisis in the US.
Lloyds Share Price Need To Hold 44.6p
A look at the LON: LLOY chart reveals that 44.6p is a very critical level on the chart. This level has become a strong support as it has triggered multiple bounces in the past few months. A closer look at the chart also shows that the price is forming an inverted cup & handle pattern.
The neckline of this bearish pattern currently lies at 45p, which is close to the 44.6p support. Therefore, Lloyds share price forecast will become very bearish if the price breakdowns below this level. The significance of this level comes from multiple confluences, as described above.
I’ll keep posting my updated analysis on Lloyds in my free Telegram group, which you’re welcome to join.
