Lloyds share price fell steeply on Monday as fears over a spike in coronavirus infections in the UK amid a removal of lockdown restrictions could derail the expected recovery of the UK economy. Lloyds share price is down 4.16% on the so-called “Freedom Day”.
The fall in Lloyds share price was among a general drop in financial and energy stocks after coronavirus cases started to rise in the North-Western part of England. This is the area around Wembley stadium, where massive crowds had gathered to watch games featuring the English national team during the recently-concluded Euro 2020 Championships.
More than 50,000 new infections were reported on Friday, prompting the closure of a central London branch of Lloyds Banking Group.
The downside move is a completion of the bearish flag on the daily chart. The steep drop has violated support levels at 46.615 and 44.990. The price has found support at 43.845. If this support eventually gives way, then 42.995 becomes a new target, while 42.015 lines up as an additional target to the south.
On the other hand, a bounce on the 43.845 support allows for a recovery towards 44.990. Above this price mark, 46.615 comes into the picture as a potential pitstop for buyers. The recovery of the uptrend has to follow the formation of a higher high above the 50.56 price level, seen on 1 June 2021. This would entail price uncapping 48.125, 49.205 and 50.435 along the way up, targeting 51.020.
