Is Lloyds an opportunity for ‘dip buyers’?

TL;DR

Lloyd's shares show a potential for a sharp reversal with a strong upward trend, while other banking shares have different patterns.

Transcript

hello it's john burford with chart of the week for monday the 16th of november and i'm covering i'm making no excuses for my frequent um returns to lloyd's it's one of the most popular shares traded on the trading platforms here so i i believe it has a pretty wide interest this is the um the daily chart that i showed in in my charts of the week i n... Read More

Key Insights

• 📈 Lloyd's shares show a strong upward trend after a significant divergence.
• 🎁 A dip in the price is expected, but it presents a buying opportunity.
• ❓ Barclays shares have a different pattern and may have a potential move up or a decline.
• 🎚️ NatWest shares have finished their downtrend and have a potential rally towards the 180 level.
• 🎚️ Chart resistance levels and Fibonacci levels are important indicators for potential reversals.
• 📈 Monitoring the patterns of various banking shares can provide insights into possible market trends.
• 🎚️ The 50 and 62 percent Fibonacci levels are considered as solid target levels in the analysis.

Questions & Answers

Q: What is the significance of the momentum divergence in Lloyd's shares?

The momentum divergence in Lloyd's shares indicates a potential sharp reversal in the price. This is a telltale signal suggesting that the current downward trend will be followed by a strong upward movement.

Q: Why is a dip expected in Lloyd's shares?

After a five-wave impulsive pattern, it is common to experience a three-wave correction. This correction, known as wave A, is expected to result in a dip in the price of Lloyd's shares. It is an opportunity for buyers to enter the market.

Q: How does the Elliott wave pattern in Barclays differ from Lloyd's?

Barclays' Elliott wave pattern does not follow the same structure as Lloyd's. Currently, Barclays is in a wave four, indicating a potential decline or a move up to the 62 percent level before a decline begins.

Q: What is the potential rally level for NatWest shares?

NatWest shares have a similar pattern to Lloyd's, with a finished downtrend and a potential wave A. If it reaches the 180 level, it suggests that Lloyd's also has a good chance of reaching the 50 level.

Summary & Key Takeaways

• The daily chart for Lloyd's shows a clear Elliott wave pattern, with a significant divergence indicating a sharp reversal. The current wave is likely part of an ABC correction.

• A dip in the price may occur, potentially starting around the 38 pence resistance level. However, after a few days or weeks, a renewed surge towards Fibonacci levels is expected.

• Other banking shares, like Barclays and NatWest, have different Elliott wave patterns. Barclays may experience either a downtrend or a move up to the 62 percent level, while NatWest has potential for a rally towards the 180 level.