Lloyds for 22/05/2019

Lloyds Bank #Cac40 #Nasdaq UK Bank share prices continue to adhere to the Elephant sex joke. If you’re successful, it takes 18 months for anything to happen. If unsuccessful, get trampled to death. When we last reviewed Lloyds, we speculated it was probably about to get stuck in a trading range between 57.5 and 63p. Guess what?

In the period since our last analysis, the share broke our 63p trigger level, hit our initial 60p target (crucially breaking it on the first downward surge) and despite a low of 59.2p, Lloyds remains with the threat of a bottom around the 57.5p level. But it’s proving painfully slow but is probably presenting a safe trading target, regardless of whether opting for a Long or Short position. Regardless of choice, entering around the midway level in the 60p area, then waiting a while to take some profit, looks a viable strategy. For a Long position, a stop can be emplaced around 56p, for a Short position, a stop looks like 64p. As the chart shows, the difficult part of any trade looks like patience.

We’re actually (a bit) surprised it hasn’t hit the 57.5p level yet but for some reason, banking shares appear attuned to whatever Brexit music is playing politically. If this is indeed the case, the big picture presently suggests 41p is exerting a long term attraction eventually, doubtless requiring the correct level of political incompetence to sufficiently damage the share price. Indeed, if the political will exists to really trash Lloyds share price, “ultimate bottom” now calculates down at 26p.

If we opt to assume the worst for the near term, apparently weakness on Lloyds now below 59.2p should drive the share back to 57.5p initially. We’d hope for a rebound at such a level but we must admit, we can now calculate a secondary at 56p.

Should we attempt a positive stance, the price requires better 65.3p to confirm a rise is possible, this triggering potential movement to 68p initially with secondary, if bettered, at a game changing 77p.

FUTURES

Time Issued	Market	Price At Issue	Short Entry	Fast Exit	Slow Exit	Stop	Long Entry	Fast Exit	Slow Exit	Stop	Prior
9:50:16PM	BRENT	71.42
9:52:59PM	GOLD	1274.91
9:55:06PM	FTSE	7355.8									‘cess
9:57:33PM	FRANCE	5387	5345	5330	5306	5380	5403	5427	5459	5348
10:01:01PM	GERMANY	12160.94									Success
10:03:16PM	US500	2865.17
10:06:02PM	DOW	25881									‘cess
10:08:29PM	NASDAQ	7456.54	7387	7362.5	7325	7456	7475	7509.5	7563	7412
10:11:21PM	JAPAN	21365									‘cess

21/05/2019 FTSE Closed at 7328 points. Change of 0.25%. Total value traded through LSE was: £ 5,579,496,230 a change of 2.76%