Lloyds: Bullish above 26p
Nicolas Suiffet October 29, 2020 9:06 AM
The British bank Lloyds reported 3Q underlying profit of 1.16 billion pounds, beating estimates.
The British bank Lloyds reported 3Q underlying profit of 1.16 billion pounds, beating estimates, thanks to a recovery of the economy and a decrease in provisions for bad debts in the face of the pandemic.
In addition, Lloyds had to set aside much less money, only 0.3 billion pounds over the quarter, to cover the risk of non-payment of loans to households and businesses.
Its provisions had reached nearly 4 billion over the first half of the year as a whole, mainly due to the damage caused by the health crisis and the containment of economic activity in the country.
The bank still expects them to be between 4.5 and 5.5 billion pounds for the whole of 2020, but now says they will be in the lower range of this estimate.
From a technical point of view, the stock price escaped from a downward-sloping channel. The RSI (14) pushed above its declining trend line and is holding above a new support near 50%. Prices need to stand above 26p (bull-trend pullback) to maintain the short term bullish bias. A break above 29.9p would open a path to see 34p (horizontal resistance). Caution: a downward breakout of 26p would reinstate a bearish bias towards September’s low at 23.6p.
Source: GAIN Capital, TradingView
GAIN Capital UK Limited (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.