What the charts say about Lloyds Banking

Lloyds Banking Group

Whatever provoked the misery in market fortunes during the FTSE 100 (UKX) Tuesday afternoon session was a bit weird.

Generally, when this sort of nonsense happens, we experience a raft of shares with drop triggers being hit. But it didn't happen so, therefore, we smell a rodent.

Even the retail banks, always the first to mimic a Champions League footballer being assaulted by an aggressive buttercup, avoided flinging themselves off a cliff.

Lloyds Bank is a case in point, again!

Our last article provided criteria for Lloyds to climb to 75p, once it achieved the herculean task of actually closing a session above the blue line on the chart.

Normal "rules" signal it really wants to reach 75p, but even intraday traffic above 71.217p will now suggest it heading to our 75p ambition. Secondary, above 75p, is now at a longer term 86p.

If trouble is planned, the red line is 67.153p as anything below this is liable to provoke an initial 63.75p with secondary, if broken, around 60p and hopefully a bounce.

We've shown a dashed red line across the bottom of the chart. To utterly foul up our calculations signalling 75p and beyond, the share price would need to weaken below this level - currently 57p.

For now, it looks safe and boring, a description no longer worthy of a UK retail bank.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.