09/14/2019 Portsmouth, Hampshire, UK exterior of lloyds bank
Lloyds (LON: LLOY) share price has been very volatile in the past few weeks. The Q2 earnings report was not taken well by the markets due to the decrease in underlying operating profits. Consequently, the shares once again broke down below the neckline of the head & shoulders pattern.
The latest technical analysis suggests a deeper pullback could be on the cards if the shares don’t break above 44.5p soon. At press time, Lloyds shares are changing hands at 43.16p, which is 2.6% above last week’s low of 41.96p. In the coming days, bears might target the June low of 41.24p.
According to the most recent Lloyds Banks news, the bank is facing a claim of over GBP 624 million for overcharging on finance. The class action lawsuit has been filed at the High Court. The High Street bank is alleged to have overcharged its clients from 2015 to 2021.
Earlier, the black horse bank’s Q2 financial results failed to impress the investors, and Lloyds share price plunged to its 4-week low. The British bank is facing headwinds due to decreased operating profits amid a higher borrowing cost in the country.
I’ve repeatedly mentioned the head & shoulders pattern on the LON: LLOY chart in my previous forecasts. At the end of July, the shares broke above the neckline, showing a significant recovery. However, this move turned out to be a fakeout, and the stock has once again broken below 44.5p.
Lloyds share price forecast is looking very bearish due to this breakdown from the head & shoulders neckline. The measured price target of this bearish pattern is 38p, which is more than 12% below the current stock price. In order to avoid this bearish move, the shares need to break above 43.5p soon.
In the meantime, I’ll keep sharing the updated Lloyds stock forecast and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Aug 07, 2023, 16:35 BST 16:35