- Summary:
- Lloyds share price has returned to the upside, but how will its exposure to a harsh business created by trade tariffs limits the upside?
Lloyds share price returned to the upside on Tuesday global stocks resurged amid rising prospect of trade tariff negotiations. The stock was at GBX 65.65 and up by 2.37% at the time of writing, gaining for the first time in five trading sessions. Those gains have ensured that the stock avoids retesting the GBX 60.00 level, which has served as support since late January.
While banks are not directly impacted by US trade tariffs announced last week, their customers, both corporate and retail are staring at harsh business environments. That could choke liquidity in markets and potentially transition to defaults if the trade tariff war escalates. According to the British Chambers of Commerce, 62% of UK businesses with trade exposure to the US say they will be negatively affected by the tariffs.
Lloyds Bank (LSE: LLOY) will get fresh volatility in the next three weeks when the bank announced its quarterly earnings. However, impairment costs will likely result in reduced profits, which could add downward pressure on the stock’s outlook in the second quarter.
LLOY share price will need to stay above the pivot mark at GBX 60.00 maintain a positive sentiment for a potential reversal of its recent losses in the leadup to its earnings release.
Lloyds Share Price Prediction
The momentum on Lloyds share price calls for further upside above the GBX 65.20 pivot mark. LLOY will likely meet initial resistance at GBX 66.36, but an extended control by the buyers will clear that barrier and test the second resistance at GBX 67.38.
On the other hand, breaking below GBX 65.20 will shift the momentum to the downside. If that happens, Lloyds share price will likely go lower to find the first support at GBX 64.12. The upside narrative will be invalid if the price breaks below that level. In addition, the resulting momentum could extend the downside to test the second support at 63.36.
