All eyes will be on the Lloyds share price on Thursday when the UK retail bank reports Q2 results. Expectations are high, and LLOY mustn’t disappoint again.
Lloyds Banking Group plc (LON: LLOY) finished the day at 46.55p, higher by 0.067p (1.45%).
Lloyds joins a host of FTSE 100 companies reporting in a packed week for earnings. The bank’s Q2 trading update on Thursday follows rival Natwest plc, which releases tomorrow.
Despite missing revenue expectations in three out of the last four quarters, analysts predict an improvement.
- Earnings Per Share (EPS) forecast 0.0252p vs 0.0051 in Q1
- revenue expected at £3.88 Billion vs £3.66B
Long term investors will hope for an upside surprise for the first in a year.
Despite gaining almost 100% from September’s 23.585p low, the Lloyds share price is still around 85% from the all-time high of 283.245p set in 1998.
However, whilst it’s a little optimistic to expect Lloyds to reclaim 1998’s peak, it’s a possibility if the data impresses, 2021’s high could be under threat.
LLOY Price forecast
The daily chart shows Lloyds has been trending lower in bull flag formation. This is often considered a bullish trading pattern that precedes the resumption of a rally.
The descending top edge is visible on the chart at 47.50p. Furthermore, the 50-day moving average at 47.45 sits below the trend, adding to the price resistance.
Below the price, the 100 DMA at 45.16p is the first line of support. Following that, the bottom edge of the bull flag at 43.01p is the next significant target for the bears.
However, if the earnings are a beat and Lloyd’s climbs above 47.50p, the bulls could aim for the 50.56p June, and 2021 high. Furthermore, an extension beyond this level opens the door to 2019’s previous 10-year high at 60.50p.
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Lloyds share price chart (Daily)
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