richgraham

LLOYDS + BARCLAYS BANK BREAK OUTS

Long
LSE:LLOY   LLOYDS BANKING GROUP PLC ORD 10P
Hello Trade Viewers, i'm fairly new to trading so i'm mainly writing this post to clarify my own thoughts, and would also welcome any feedback.

Here we can see lloyds has climbed on upward trend since september, and broken out of its previous March resistance at 37, and we have a new base support with two points bouncing off 33 which is now showing a bull flag pattern. With the rollout of vaccine and an itch for businesses to get back into business, UK bank economists have recently reported that the UK economy is 'spring loaded' ,and ready to burst out once out of the covid lockdown gates. Perhaps this is a good moment to make a buy trade that could bounce back to the pre-covid support line of 50 (which is also confirmed with the fib tool 0.618) or beyond to the previous highs of 70. The stock is not overbought or oversold with an rsi of around 55.

i also think that after the initial economic 'spring' bounces back there could be a slump later on in the year, especially if cv-19 lags and the bank of England has to make negative interest rates. That could last for some time due to the amount the government has had to borrow so it could be a short hold of 1-3 months, but lloyds is part of the ftse 100 best performing companies and a solid bank who i have been banking with for over 15 years and never had a problem with, in fact i find there digital online service pretty good and would not mind going long. Reviews also suggest that Barclays bank could potentially be a better investment so maybe it is worth going in on both. Also Jpm morgan looking to bringing a new bank to UK which would be competition to consider.

Thanks for reading and see you next time.

Rich