Lloyds share price is down today as the technical picture on the daily chart heightened the chances of a deeper correction before a resumption of the uptrend.
Of interest to traders is Thursday’s breakdown of the bearish flag setup on the daily chart, which indicates that Lloyds share price may still be in a correction. However, this may not last much longer as the bank’s first retail housing units get set to receive its first tenants this summer, which could serve as a real boost to the bank’s earnings. According to a previous report by the Financial Times, the first housing units acquired by the bank are in the Peterborough area. This is the potential location where the first private tenants could move in.
Lloyds’ bank has a stake in the UK’s largest mortgage lender and made a move to deepen its involvement in the UK’s private rental market following the coronavirus pandemic.
Thursday’s decline following the resolution of the bearish flag has found support at the 44.90 price mark (4 May low). A further decline breaks down this area and makes 43.845 available for sellers as the next target. Below this level, 42.995 and 42.015 form additional targets to the south if the measured move continues.
On the flip side, an extension of the bounce may allow the bulls to initiate a recovery towards 46.615. Only a break above the next resistance at 48.125 invalidates the bearish flag pattern and opens the door towards 49.205 and potentially 50.435. A return to the uptrend is guaranteed if the price breaks above 50.435 to form a higher high above the 2021’s current high formed on 1 June.
