Lloyds (LON: LLOY) share price has been in a tailspin since the start of this month. The shares of the black horse bank have broke below the key support level of 44p and now trading at 42p. Technical analysis suggests there is more downside for the stock in the coming days.
On Tuesday, Lloyds shares were up 0.37% despite an overall negative sentiment in the market. The benchmark FTSE 100 index lost 27 points in the first half of today’s trading session. The bounce in Lloyds comes after five consecutive days of downtrend.
According to the most recent Lloyds Banking Group news, JPMorgan has downgraded the stock from ‘neutral’ to ‘underweight’. The US-based investment giant lowered its Lloyds share price target from 56p to 42p. Consequently, the bank’s shares plummeted to their lowest level since November 2022 on Monday.
The UK economy continues to face headwinds from the high inflation. While the banks have been the biggest beneficiaries of the high interest rates, the recent banking crisis in the US has exposed the shortcomings in the global banking system.
The latest analysis of the LON: LLOY chart shows that the price is yet to meet the price target of the recent breakdown from the head & shoulders pattern. The price target of this breakdown is 35p, which is 16% below the current price.
Lloyds share price forecast will remain bearish until it regains strength above 45p. This previous support may now become resistance for the stock of the black horse bank. If you are planning to buy Lloyds shares, then you must closely watch the retest of the 38p support level in the coming days, which is another significant level on the daily chart.
In the meantime, I’ll keep sharing updated Lloyds stock forecast and my personal trades on my Twitter where you are welcome to follow me.
This post was last modified on Jun 27, 2023, 13:53 BST 13:53