Why Lloyds shares tick all boxes for another push higher

Lloyds Banking Group (LSE:LLOY)

We're starting to suspect the only lasting legacy from the (current) UK prime minister will prove to be groupings of red circles on charts!

A variety of shares had exuberantly broken their near-term downtrends, finally heading upwards. We've circled Lloyds' positive movement. Now, it's not heading up and the market seems a bit cheesed off.

To get the good news out of the way first, Lloyds has ticked all the boxes for 77p on the current cycle, probably even 97p as a proper level at which some volatility makes sense.

Utterly cancelling this prospect will require the price to trade below the red line, currently around 60.457p. So, there's the stop loss for the insanely brave or gullible.

What happens if the share price value slithers below 60.4p?

We're now projecting 56p initially, perhaps even 51p if broken. Visually, this effectively "double bottoms" the share price against the lows of 2016 and would give some hope for a bounce but by breaking below 60.4p, all our calculations for the future on the current price cycle become tosh.

That's about it. The circled area silently highlights the damage inflicted on the market by our "strong and stable" leader's effort to place politics before the good of markets and the economy.

And, more importantly, this nonsense risks undoing rather a lot of work at our end... Which, just perhaps, explains the angry tone of this report.

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. 

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