Will Lloyds break resistance, or will it fall back to 52p?

• Falling range channel since February; multiple resistance at 58.5p
• Fallen from resistance 8 times. Now 56.8p (at time of writing)
• Will the pattern repeat itself, shares falling back towards 52p?
• Shares -21.8% from 2018 highs; +14.8% from 2018 lows; +9.6% year-to-date
• Peer Santander reports weak fourth quarter UK results
• Lloyds exposed to UK Housing market and thus Brexit
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Lloyds – An Example

Let’s say you like the Lloyds range, you think it’s heading back down to 52p again. You decide to sell exposure to £10,000 worth of Lloyds using a CFD, at the current price of 56.8p. To do this, you need £2,000.

Let’s assume Lloyds  falls back to 52p (-8.5%). Your profit would be £850, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Lloyds rises 5% and hits your stop-loss. Your loss would be £500.

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