- Summary:
- Tomorrow, the legal and General share price faces its biggest test of recent times, when the financial services giant releases its H1 trading update.
Tomorrow, the legal and General share price faces its biggest test of recent times, when the financial services giant releases its H1 trading update.
Legal and General plc (LON: LGEN) has been attempting to recover from last month’s trip below 250p. Following July’s 249p five-month low, LGEN has increased by just over 6.5% to yesterday’s 264.70p closing price.
However, if the multinational asset manager has a chance of returning to May’s all-time high of 293.30p, it must not disappoint tomorrow.
Earnings per share are forecast to come in at 15.01p vs 14.65 for the same period last year. Lower than H2 2020s 0.17p EPS.
Revenue for the 6 months is expected at £31.36 Billion, a huge increase on the £4.5 billion from the same period last year. And improving on H2’s £5.74 billion.
With so much to play for, the technical outlook is fascinating.
LGEN technical Analysis
The daily chart shows the Legal and General share price dipped below the 200-day moving average during last months sell-off. However, LGEN soon reclaimed the average at 252p, and the stock advanced a further 5.7%.
However, the price faces considerable overhead resistance. The first of which is a descending trend line from the January high, visible at 267p.
Next, the 50, and 100 DMA’s at 269.10p and 272p, reinforce the significant challenges above the market.
However, if the share price overcomes this confluent resistance, the May high comes into view.
Although, if LGEN loses the support of the 200 DMA, the outlook turns sharply negative. In this event, the bears will target a return to January’s 232.60p low.
Legal and General share price chart
