Is Lloyds Banking Group plc (LYG) Investing Its Way Into A Muddle?

Lloyds Banking Group plc (NYSE:LYG) fell by -0.82% in Thursday’s trading session from $3.64 to $3.61. The price has fallen in 6 of the last 10 days and is down by -1.1% over the same course of time. There was a decrease in both volume and price. This is usually interpreted as a good sign as traders widely believe falling stock should see declining volume. Traded activity experienced a fall of -2.88 million shares and in total 17.61 M shares exchanged hands for about $63.59 million.

Inside LYG’s Recent Trend

Lloyds Banking Group plc (LYG) is the upper part of a wide and horizontal trend and normally this would pose a good selling opportunity, but a break-up through the top trend line at $3.66 will give a strong buy signal and a trend shift may be expected. Given the current horizontal trend you can expect Lloyds Banking Group Plc with 90% probability for the price to range between $3.26 and $3.65 in this timeframe. Investors sometime notices large volume spikes after a breaking of the horizontal base, and stocks rarely experience a roller coaster ride from the bottom of a trend. Stocks jumping at a middle end of a horizontal base are therefore followed in search of a potential runner.

Lloyds Banking Group plc Technical Signals

LYG has witnessed its short term MA triggering a sell signal. Meanwhile, however, the long-term average has generated a buy signal. When the short-run moving average rises above its longer-term trend, a buy signal is created. This is because a short-run moving average that crosses its long-run moving average counterpart is seen as the initiation of an upward trend. On additional rally, the share price will meet short term resistance at around $3.63. On a drop, the stock is likely to find some support over the long run, which begins at $3.46. A buy signal will be generated if it crosses above the short term moving average. Meanwhile, however, a price crossing below the long term moving average will generate a sell signal. Its pivot point low generated buy signal on Tuesday October 03, 2017, which calls for additional surge until the stock forms a new pivot point high. Some other technical concerns emerged as well, putting in risk the future growth of the stock in the next couple of days. The downbeat movement of both volume and price during the recent session is interpreted as a good sign because traders usually believe falling stock should see declining volume.

Lloyds Banking Group plc (NYSE:LYG) Support And Resistance Levels

Lloyds Banking Group plc (LYG) recorded volume accumulation so there will probably be a surplus of buyers at $3.53. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $3.64, $3.65 and $3.66.

Accumulated volume is going to prevent the price from rising further at $3.64 and this action will lead the price to take a temporary pause or stay muted for a few days.

Lloyds Banking Group plc (LYG) Risk Assessment

The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $0.05 (1.40%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 1.06%.

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