Lloyds Banking Group Stock Struggles to Keep Up with The Upside

by Darius Anucauskas
12:07, 2019/06/24

In the beginning of June, the Lloyds Banking Group stock (LON: LLOY) tested its key support zone, near the 56.50 hurdle and rebounded from it. But the bounce wasn’t significant enough to push the price above 59.30, which acted as a good resistance and forced the stock to reverse back south again. Given that, once again, the stock is close to the above-mentioned support area, at 56.50, we will monitor that level carefully. A break of that level may clear the path towards the lows last seen in the first half of January.

A price-drop below the 56.50 hurdle would confirm a forthcoming lower low and might clear the way towards the next potential support area, at 54.90. That area held LLOY from falling on January 17^th. If it manages to withhold the stock from moving lower again, this may result in a small correction back to the upside. That said, if investors are still not able to push the share price back above the 56.50 barrier, this could lead to another decline, which might bypass the 54.90 zone and target the 53.20 level, marked by the low of January 10^th.

Looking at our oscillators, the RSI and the MACD, both are giving us bearish signals. The RSI is below 50 and points to the downside. The MACD, although it had recently bottomed, has now turned back to the downside. The indicator is still below zero but remains slightly above its trigger line.

On the upside, in order to start examining higher levels again, at least in the short run, we need to see a clear push above the 59.30 barrier first. LLOY might continue drifting higher, potentially moving above all of its EMAs. The next possible resistance zone could be seen near the 60.80 obstacle, marked by the high of May 21^st. But if that obstacle is only seen as a temporary pit-stop on the move up, then a break of it could open the door for a test of the 61.50 hurdle, which is the high of May 16^th.

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