Lloyds Banking Group Plc’s share price showed a breakout after the formation of an inverted head and shoulders pattern over the daily chart. Bulls regained control and surged the price with momentum after bears attempted to pull the LLOY share price below a year-low price. The breakout of the pattern initiated a short covering among the bears and the price hiked sharply.
The price trend analysis shows that the LLOY share price had been showing signs of weakness over the charts when it slipped below the 200-day EMA. The bears were in control of the price trend and shorted heavily whenever the price tried to break above the 200-day EMA.
The recent price surge after the breakout of the inverted head and shoulder pattern showed the momentum in buying. The price currently struggles to break above the 200-EMA. The breakout above the 200-EMA may again initiate a bullish rally as the bulls have gained control.
Also, the price might retest the previous breakout zone and gain momentum thereafter. It has shown a breakout of the 50-day EMA that might act as a dynamic support and the price may take a bounce back.
LLOY Share Price Prediction For 2023
The average analyst price target for Lloyds stock in 2023 is £0.52, which represents a potential upside of 18.16% from the current price. However, there is a wide range of analyst price targets, from £0.42 to £0.83. The most optimistic analysts believe that Lloyds stock could reach £0.83 in 2023.
LLOY Stock Price Tries To Sustain Above 50-day EMA
The daily price chart shows that the LLOY share price has shown a breakout above the 50-day EMA indicating bullish dominance in the short-term. The price must break above the 200-day EMA in order to turn the trend bullish in the long term.
The overall technical opinion rating including RSI and MACD signals a 40% “sell” rating with a weakening short-term outlook on maintaining the current direction.
Conclusion
Lloyds Banking Group Plc’s share price showed a breakout after the formation of an Inverted head and shoulders pattern over the daily chart. This breakout initiated a short covering among the bears and the price hiked sharply. The price is currently struggling to break above the 200-day EMA, but if it succeeds, it may initiate a bullish rally. The average analyst price target for Lloyds stock in 2023 is £0.52, which represents a potential upside of 18.16% from the current price.
Technical Levels
- Support levels: £0.43 and £0.41.
- Resistance levels: £0.45 and £0.466.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/09/30/lloy-share-price-forecast-can-lloy-price-surpass-200-day-ema/