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Lloyds Share Price Rebounds From 50p Amid Sideways FTSE 100

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Written By: Abdullah Sarwar
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    Summary:
  • Lloyds share price is looking very bullish as the Bank's financial reports are pointing towards another profitable quarter.

Lloyds share price (LON: LLOY) is showing strength as the global equities keep tumbling. The UK banking industry is one of the biggest beneficiaries of the ongoing quantitative tightening. The increased interest rates have significantly increased the operating profits of industry leaders like Lloyds and Barclays.

On Tuesday, Lloyds share price UK opened higher but couldn’t gain momentum during the early trading hours. At press time, the price is trading at 51.72p after posting minor gains of 0.08%. My overall outlook on the price is still bullish, as the rates are expected to remain high for the foreseeable future.

When Will Lloyds Shares Reach £1?

Lloyds banking group plc is one of the biggest investment banks in the UK. Lloyds shares trade on the London Stock Exchange which is the country’s biggest bourse. The shares that trade under the ticker LON: LLOY are basically penny shares due to their very low price per share.

Most retail investors are holding shares of Lloyds Bank, expecting it to reach £1 in the near term. This means a 93% price increase from current levels. It is worth mentioning here that Lloyds share price was trading much higher than 1 pound before the 2008’s financial crisis.

The Bank was on the verge of bankruptcy when the British government saved it via a bail-out package. Since then, the shares have been trading below £1 and even fell to 23 pennies in 2020. Nevertheless, 2023 is the best time for the price to surge to reclaim the 1 pound level. If Lloyds share LSE fails to break above this barrier amid such high rates, then it will stay below it for the next many years.

Lloyds Share Price Forecast

It is quite evident from the following chart that LON: LLOY is enjoying a massive uptrend that started in October 2022. For the past few weeks, the price has faced a slight pullback but the momentum is still with the bulls. In the coming days, I expect the price to retest the February high of 54.5p. A reclaim of 56p level will make Lloyds share price forecast very bullish.

Short-term traders must also know that a break below the 50p psychological barrier will be extremely bearish. In such a situation, I expect the price to retest the 45p level, where lies the 200-day moving average.

Lloyds Share Chart – 1D Timeframe

This post was last modified on Mar 07, 2023, 10:27 GMT 10:27

Written By: Abdullah Sarwar

Abdullah Sarwar is a blockchain analyst and a cryptocurrency investor with more than 5 years of experience. He specializes in providing crypto price projections based on their fundamentals and price charts. He is also a successful day trader. He graduated in 2015 with a degree in electronic engineering. In his free time, he loves listening to electronic music and playing with trading bots.

Published by
Written By: Abdullah Sarwar