- Summary:
- LON: LLOY Outlook: Lloyds share price needs to hold 44.6p in order to aim for more upside. A retest of 48p is still possible.
As Lloyds share price faces a pullback, many investors are questioning their decision to buy after the recent breakout above 44.6p resistance. The pullback occurred after a failed breakout attempt above July high of 47.125. As a result, the shares of the dark horse bank are trading at 46.83 at press time.
The UK bank shares showed a mixed price action on Tuesday. Barclays shares led the sector with 1.35% gains along with the shares of Metro Bank and HSBC Bank, which rose 0.55% and 0.26% respectively. However, the shares for Lloyds and NatWest Group had a losing day and were down 0.32% and 0.18% for the day.
According to the latest Lloyds news, the bank has appointed Amanda Mackenzie as a member of the Audit Committee. Amanda is serving as an independent non-executive director and Chair of the Responsible Business Committee.
The overall market sentiment in the UK-listed equities has improved drastically in the past few days. Nevertheless, the benchmark FTSE 100 index remains well below its all-time high. The investor focus seems to be on the US stocks as the Fed is expected to start cutting interest rates at the end of the first quarter.
LON: LLOY chart shows bearish divergences on the 4H timeframe. These divergences are formed on the Money Flow Index (MFI) and the Relative Strength Index (RSI) indicators and suggest there could be a deeper pullback.
However, Lloyds share price forecast won’t flip bearish as long as it remains above $44.6p support level. This level gains its significance from the confluence of 200 MA and a strong support zone. Therefore, it is very vital that the bulls defend this level in order to have another bullish leg.
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