Lloyds: Bullish above 26p

The British bank Lloyds reported 3Q underlying profit of 1.16 billion pounds, beating estimates.

Uptrend 2

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

More from Bank Stocks

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.