LLOY.L still stuck within tight trading range
Lloyds Banking Group (LLOY.L) Technical Analysis Report for Sep 14, 2018 | by Techniquant Editorial Team
LLOY.L finished the week 0.24% higher at 58.88 after losing £0.36 (-0.61%) today on low volume. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (LLOY.L as at Sep 14, 2018):
Friday's trading range was £0.71 (1.2%), that's slightly below last trading month's daily average range of £0.80. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 58.51 and 59.61 which it has been in now for the last trading week.
Prices are trading close to a key support level at 58.56. Unable to break through the key technical resistance level at 59.41, Lloyds Banking closed below it after spiking as high as 59.45 during the day. The failure to close above the resistance might increase that levels importance as resistance going forward. The stock ran into sellers again today around 59.45 for the third trading day in a row after having found sellers at 59.43 in the previous session and at 59.34 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 58.56 where further sell stops might get triggered.