Throughout the whole of 2018, the Lloyds Bank Group stock (LON: LLOY) has been on a steady slide, trading below its long-term downside resistance line, drawn from the highest point of January last year. Certainly, in November, we saw a small false breakout through that line, but the price quickly got back below the line the next day. Today, we are seeing a much stronger push through the downside line, which may result in further recovery. Nevertheless, we will carefully monitor the stock’s trading activity next week, but if LLOY remains above the long-term downside line, this could be a good opportunity for more buyers to join in.
The stock continues to drift higher and is now aiming for a possible re-test of the 58.60 resistance barrier, which last time was tested on the 26th of November, acting as a the high of that day. There is a chance we may see the buying momentum easing off near that barrier, which may lead to the price correcting a bit down. But as long as it remains above the aforementioned long-term downside line, the stock could continue providing good opportunities for investors to re-enter game. This might lead to another rise of LLOY to the 58.60 area, which if this time it fails to withhold the bull-pressure, its break might clear the way towards the round number of 60.00, which marks the highest point of November.
Looking at our oscillators, the RSI and the MACD, both are in support of the above-discussed idea. The RSI is above 50 and points to the upside. The MACD is also pointing higher, by sitting above zero and the trigger line.
On the downside, if suddenly the price drops back below the previously-discussed long-term downwards-moving trendline, this could be the first warning sign that the stock is struggling to keep up with the pace of moving higher. But if the LLOY starts breaking below the 54.90 hurdle, this is when we could expect the stock to shift further down. The slide might take the share price to the 53.20 obstacle, a break of which could force Lloyds to drop to the 51.80 level, marked by the last trading day of 2018.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
FX and CFDs are leveraged products. They are not suitable for every investor, as they carry high risk of losing your capital. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure.
Copyright 2019 JFD Group Ltd.