Lloyds for 26/06/2019

#SP500 #NK225 Our monthly visit to a favourite Banking Sector candidate, Lloyds, once again permitted self congratulation for a prior report. (Link Here) Alas, the next few sessions are liable to prove “interesting”, thanks to the potentials if the price manages to stumble below 56p. We moaned, previously, of banking shares dancing to Brexit tunes and this remains the case.

In fact, if we review the overall banking sector, FTSE:NMX8250, at time of writing it’s trading at 3781 and is flirting with some fairly nasty dangers. It only requires weakness below 3730 to trigger some misery down to an initial 3600 with secondary, when broken, at a bottom (hopefully) of 3212 points. Crucially, similar to Lloyds, it has not yet broken its final immolation trigger, so hope remains.

In the case of Lloyds, below 56p now calculates with travel down to 51.8 next. This ambition coincides with a long term uptrend which implies a bounce can be expected, should such a level make an appearance. Our secondary, if 51.8 breaks, is down at 46.8p, a point where there’s almost a requirement for a rebound. The “however” is quite dangerous, thanks to 46.8 taking the share into a region where the Big Picture computes with 41p as a pretty major expectation, along with an eventual journey down to 26p.

Our suspicion is we shall witness 51.8p eventually and this should co-incide with the overall sector at the 3600 level. And hopefully, everything should rebound.

At present, we require Lloyds to exceed 62.25p as this should calculate with a genuine bounce, propelling the share into a region where an initial 67p is supposed to be real. According to the tea leaves, our secondary of 71.25p risks being game changing for the longer term, allowing some fairly impressive (and unheard of for nearly 10 years) longer term target levels.

For now, while we can hope 51.8p shall be “it”, historical behaviour in the banking sector makes us fear the worst.

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

9:28:35PM

BRENT

64.45

               

9:30:48PM

GOLD

1422.93

               

Success

9:41:09PM

FTSE

7396

               

Shambles

9:42:50PM

FRANCE

5494.7

               

9:44:58PM

GERMANY

12188.79

               

‘cess

9:47:02PM

US500

2918.29

2915

2913

2896

2937

2937

2942

2951

2920

Success

9:49:46PM

DOW

26558.5

               

‘cess

9:52:07PM

NASDAQ

7601.75

               

Success

9:54:34PM

JAPAN

21094

21058

20994

20787

21188

21223

21253

21318

21112

‘cess

25/06/2019 FTSE Closed at 7422 points. Change of 0.08%. Total value traded through LSE was: £ 5,312,471,944 a change of 3.25%

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