FTSE 100
Lloyds’ share price started the week on a positive note with a 0.2% upside move, following the announcement of top HSBC banker Charlie Nunn to replace outgoing Chief Antonio Horta-Osorio, who leaves in June 2021.
Nunn is to receive lower pay than Horta-Osorio, along with stock options, to compensate for what he is giving up at HSBC.
Nunn is now facing the burden of navigating Lloyds bank through a problematic pandemic era, which has also seen the Bank of England cap dividend payments and implement near-zero interest rates. IN what has ultimately proven to be the worst possible timing for Lloyds share price, the UK government sold off nearly all its remaining holdings in the bank in December 2019, sending the stock into freefall, which was exacerbated by the onset of the coronavirus pandemic.
Today’s news helped propel Lloyds’ share price beyond the resistance at 37.02. Confirmation of a breakout has to come from two successive daily candle closing penetrations above this level. This setup would then open the door for a retest of the 40.66 price resistance. 43.845, 44.99 (10 March high), and 48.125 (28 February low) are additional targets to the north.
On the flip side, a failed break of 37.02 could set Lloyds’ share price up for another push to the south, targeting 35.97 and possibly 34.77 and 32.95, as they line up as additional support targets.
