The Lloyds share price is still in a consolidation mode after last week’s mild Bank of England (BOE) interest rate decision. The stock ended the week at 47.22p, which was about 7% below the year-to-date high of 50.5p. It has risen by more than 100% from the lowest level in 2020.
Lloyds bank news. Lloyds Bank announced that it will close additional branches as more people continued to focus on digital banking. The closure will include Lloyds and Halifax branded branches. While the move was condemned by unions, Lloyds said that the branches that will be closed will be in large cities, with other branches located nearby.
It also said that the impacted branches have recently seen fewer costumers as more people embrace digital banking. The company will have 779 Lloyds, 560 Halifax, and 184 Bank of Scotland branches.
Lloyds Bank also reacted mildly to the BOE decision last week. The bank left its interest rate unchanged and committed to continue with its quantitative easing. It did not provide a signal as to when it will start ending the quantitative easing program.
The Lloyds share price is also wavering as investors look ahead to the reopening. Recently, house prices have surged, helped by strong demand. However, as government measures to shield the economy from the pandemic ends, there are growth concerns about the industry. This is important since Lloyds is the biggest mortgage provider in the UK.
The daily chart shows that the LLOY share price has declined slightly from its highest level this year. The stock is slightly below the 50% Fibonacci retracement level. It is also slightly above the 50-day and 100-day exponential moving average (EMA). It also seems to be forming a bullish flag pattern.
Therefore, in my view, like I wrote last week, I suspect that the shares will break out in the near term. This will likely happen before July 17 when the company will deliver its earnings. On the flip side, a move below 40p will invalidate this trend.
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