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by Darius Anucauskas

Is It Time to Buy LLOY Again?

From the technical side, Lloyds Banking Group PLC (LON: LLOY) has been trading sideways since around January 18th, when the stock broke above its long-term downside resistance line, taken from the high of January 23rd, 2018. The share price is stuck between roughly the 56.75 level on the downside and the 58.60 barrier on the upside. Taking into account everything what was mentioned above, we will remain cautiously-bullish, at least for now.

In order to get comfortable with examining higher potential resistance areas, we would like to see another break and a close of the daily candle above the upper bound of the aforementioned range, at 58.60. This could attract more investor interest, as the stock might increase its chances of traveling further up. This is when we will target the next potential area of resistance at 60.00, marked by the high of November 9th. If that area is no match for the buyers, a break above it could lift the share price to the 62.00 level, which is the high of September 21st.

Our oscillators have somewhat slowed down, at the time of this analysis. The RSI, even though above 50, is pointing slightly to the downside. The MACD, although above zero, is also showing slowing momentum and remains slightly below its trigger line.

Alternatively, if the stock slides, breaks the previously-mentioned downside resistance line and drops below the 54.90 mark, which is the low of January 17th, this could spook investors, at least in the short run. This is when the share price may slide towards the 53.20 obstacle, a break of which might lead LLOY to the 51.80 hurdle, marked by the inside swing high of December 31st.

LLOY daily

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