Will Lloyds break higher, or will it fall back to 56p again?

• Lloyds’ falling channel exists since January
• Bounced back from falling highs trendline 7 times, most recently today.
• Now trading 59.3p (at time of writing)
• Will the pattern repeat itself, testing previous lows?
• Shares -18.1% from 2018 highs; +6.3% from 2018 lows; -13.0% year-to-date
• 5 Nov: Lloyds ranks among worst in EU Bank stress tests
• 30 Oct: Goodbody says Lloyds may be hit by surge in PPI complaints
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Lloyds – An Example

Let’s say you like the range, you think it’s heading back towards 56p again. You decide to sell exposure to £10,000 worth of Lloyds using a CFD, at the current price of 59.3p. To do this, you need £2,000.

Let’s assume Lloyds falls back to 56p (-5.6%). Your profit would be £560, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Lloyds rises 3% and hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.