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Lloyds Banking Group (LLOY)
How Lloyds Bank shares could be worth 32% more
By Alistair Strang | Thu, 11th May 2017 - 10:08
Lloyds Bank (LSE:LLOY)
By far the most common item emailed regards the retail banks, so it's time to step back and remember the song "Bring on the Clowns". Lloyds (LLOY), by closing two sessions at 70p, has left us aghast with apathy for its future as it's supposed to be going up!
The key issue was closure above 68.84p, a feat the share has accomplished and, better still, reached the dizzy heights of 70.7p in the period since.
Suffice to say, we are not amused but do take assurance from the price's behaviour in respecting the blue line on the chart.
Currently the price would need to close a session below 68.7p to trash the historic blue trend and spoil any immediate optimism, as reversal toward 65.7p could soon follow. Or even 62.5p if the market develops a real sense of humour and opts to play "hunt the circled gap"!
However, despite slipping in a bit of misery above, we're inclined to take heart from the respect shown toward the blue line and tend to suspect the current political shambles which is the UK dampens such a vulnerable subject’s potentials.
Or perhaps it's Noel Edmonds suing 'em in the hope of regaining his stature as a great something or other.
If we opt to abandon caution and treat Lloyds Banking Group PLC as a proper share, the current big picture situation suggests movements now above 70.7p should prove capable of generating an initial 81p with secondary, if bettered, at 92p.
There is a critically important detail worth mentioning (again), and visually it's around the 75p mark where we've painted a pink barbed wire line.
For some reason, on three prior occasions, the market has found this price level important and we'd really want the share to close above this level before allowing blind optimism to enter the equation.
For now, it certainly has potential but a lack of any certainty - from our jaundiced perspective.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
|Bid / Ask||72.26 / 72.27|
|Day Range||71.83 / 73.33|
|52Week Range||47.10 / 74.00|
|Last Update: 11:00:57 (26/05/17)|