Lloyds (LON: LLOY) share price has rebounded from its May lows. However, this doesn’t feel like a strong bounce, and the price may soon retest the lows once again. The latest analysis reveals that the price is forming a very bearish pattern on its chart.
On Monday, Lloyds shares slid 0.20% as the UK shares showed a mixed sentiment. Shares of other banks also showed a negative price action as the FTSE 100 index remained sideways. This makes the third consecutive red day for Lolyds stock.
In one of the most surprising developments, Lloyds Bank took control of the Telegraph newspaper last week. This was after the newspaper failed to pay its debt. The British lender gained control of the media giant from the Barclays family after the talks failed to come to any fruition.
Consequently, the bank will appoint investment bankers to look after the auction of around £600 million worth of assets owned by The Telegraph. In other news, Lloyds Banking Groups recorded a 46% surge in pre-tax profits for Q1 2023. This was revealed in the recently released earnings report. Amid all these developments, Lloyds share price has remained sideways.
The advanced technical analysis of the LON: LLOY chart reveals that the stock is forming a head & shoulders pattern which is one of the most bearish patterns especially on higher timeframes. The neckline of this pattern lies at 44.6p, which is also a major support level.
Therefore, Lloyds share price forecast will become very bearish if the price doesn’t break above 45p soon. If the shares lose 44.6p support, then the next stop could be the 35p level which is 23% below the current price of 45.21p.
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 %s = human-readable time difference 14:22