Lloyds share price has endured a choppy day of trading, following yesterday’s huge slump.
Lloyds share price fell 4.4% on Monday in the worst possible start for the stock, as outgoing CEO Antonio Horta-Osorio endured hours of grilling by MPs over the HBOS scandal.
The HBOS scandal arose when the subsidiary company owned by LLoyds was accused of failing to appropriately compensate victims of a scam that occurred more than a decade ago. Corrupt managers at the HBOS Reading branch were involved in a scheme that saw small businesses tricked into taking loans that ensnared them into losing assets and being liquidated, in collusion with external consultants. An independent review led by a retired judge found that the original compensation recommended by the initial review was deficient and recommended a new compensation regime.
Lloyds Banking Group has endured a rough year, which began in December 2019 as the UK government divested nearly all its holdings from the bank; a move that led to Lloyds share price losing nearly half of its value. The coronavirus pandemic piled on more woes for the bank, and it has been forced to lower its earnings forecasts as it prepares to factor in a huge portfolio of non-performing loans.
Price has found support at the 34.77 support line, in what has been a choppy day of trading.
This support has arrested the slide in price from the last few days. However, if this support gives way, then the door will be opened towards new support levels at 33.09 and possibly at 32.10 and 31.25.
On the other hand, recovery from a bounce on the current support allows buyers to target 37.02, with 38.26 and 39.53 also serving as additional upside targets.
