Throughout the whole of 2018, the Lloyds Bank Group stock (LON: LLOY) has been on a steady slide, trading below its long-term downside resistance line, drawn from the highest point of January last year. Certainly, in November, we saw a small false breakout through that line, but the price quickly got back below the line the next day. Today, we are seeing a much stronger push through the downside line, which may result in further recovery. Nevertheless, we will carefully monitor the stock’s trading activity next week, but if LLOY remains above the long-term downside line, this could be a good opportunity for more buyers to join in.
The stock continues to drift higher and is now aiming for a possible re-test of the 58.60 resistance barrier, which last time was tested on the 26th of November, acting as a the high of that day. There is a chance we may see the buying momentum easing off near that barrier, which may lead to the price correcting a bit down. But as long as it remains above the aforementioned long-term downside line, the stock could continue providing good opportunities for investors to re-enter game. This might lead to another rise of LLOY to the 58.60 area, which if this time it fails to withhold the bull-pressure, its break might clear the way towards the round number of 60.00, which marks the highest point of November.
Looking at our oscillators, the RSI and the MACD, both are in support of the above-discussed idea. The RSI is above 50 and points to the upside. The MACD is also pointing higher, by sitting above zero and the trigger line.
On the downside, if suddenly the price drops back below the previously-discussed long-term downwards-moving trendline, this could be the first warning sign that the stock is struggling to keep up with the pace of moving higher. But if the LLOY starts breaking below the 54.90 hurdle, this is when we could expect the stock to shift further down. The slide might take the share price to the 53.20 obstacle, a break of which could force Lloyds to drop to the 51.80 level, marked by the last trading day of 2018.
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