Lloyds 1Q miss - Reason for optimism in the chart
Nicolas Suiffet April 30, 2020 8:31 AM
Lloyds Banking Group, a major British bank, announced mixed 1Q results
Lloyds Banking Group, a major British bank, announced mixed 1Q results: "Statutory profit before tax for the three months ended 31 March 2020 was 74 million pounds, 95% lower than in the first quarter of 2019, impacted by a significantly increased impairment charge. The impairment charge in the quarter increased significantly to 1,430 million pounds, primarily driven by updates to the Group's economic outlook and some charges relating to existing restructuring cases.
From a technical perspective, the stock price has broken above a declining trend line and is posting a rebound. The weekly bullish candlestick which is taking shape offers strong support at 30p. The weekly Relative Strength Index (RSI, 14) confirmed the breakout of its oversold area at 30%. Lloyds bulls may want to take advantage of any pullback towards 32 to consider buy opportunities. Next bullish target is set at 38.5p.
Alternatively, a break below 30p would invalidate the bullish bias and would call for a new down move towards 26p.
Source: GAIN Capital, TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.