Lloyds share price closed at 47.71p on Friday. The shares of the black horse bank tumbled 0.54% on the last trading day of the year which was also their second consecutive daily loss. The recent price action suggests that bulls have run out of gas and bears may get an opportunity to make a comeback soon.
This year has been a roller coaster ride for Lloyds shares as they started the year on a very positive note. In the first 6 weeks of the year, the price surged almost 17%. However, the price action reversed as the selling pressure increased above 54p.
As a result, the stock entered into a downtrend and kept making lower highs and lower lows until its bottom of 39.42p in October. This was the same time when the inflation in the UK started to show a significant downtrend and hence the equity prices started to recover.
Since then, LON: LLOY has soared almost 21%. It has also broken above 44.75p resistance level which is another sign of strength. Many traders are betting for a retest of the 50p psychological level in early 2024.
However, this Lloyds share price forecast could be out of the window if the price breakdowns below 46.58p. This is because this will signal the formation of a double top on the daily chart, which is a bearish reversal pattern. Nevertheless, currently, the trend is still bullish, and there is more probability of a bullish continuation in January 2024.
This post was last modified on Dec 30, 2023, 00:53 GMT 00:53