Lloyds share price (LON: LLOY) is having another bad week as the price plummeted by 4.87% on Monday. At press time, the shares are changing hands at 47.36p after a massive sell-off throughout the day. The banking concerns in the US are now spreading across the Atlantic as the interest rates in the UK are also very high.
Lloyds shares started the day by opening at the 50p level. However, there was no demand at this key psychological level, and the price experienced a massive sell-off. The price appears to be heading for a retest of the 200-day moving average, which lies at 45.88p. On Monday, other major UK banks also tanked very hard. Barclays, HSBC, and Natwest Group all were trading 4-6% lower than their last closing till press time.
Recently it has been revealed that the top executives of Lloyds Banking Group have sold large chunks of shares as the lockup period ended. The bank’s interim chief operating officer sold shares worth £1.53. The chief risk officer Stephen Shelly also got rid of 2.7 million shares at GBX 52, racking in £1.42.
Claire Shelley, who’s a close associate, also bagged £690,000 in cash by liquidating 1.31 million shares. This revelation of insider selling could also be a major reason behind the plummeting Lloyds share price. This ongoing negative price action of LON: LLOY comes just weeks after the bank announced strong financial results for 2022.
Lloyds shares are currently trading well below the key psychological level of 50p. This level has acted as a major pivot on many previous occasions. If the price closes today below this level which is pretty much a given, then it will start to act as a resistance. On the daily chart, the next major support lies at the 44.64p level, which is 5.75% below the current price.
Another region that may act as a reversal zone is the 45.88 level, where lies the 200-day moving average. This key indicator often acts as a support when the price gains strength above it. In case of a failure to bounce from both these supports, the price can head toward the 38.5p level to retest the October lows.
This post was last modified on %s = human-readable time difference 15:28