isatrader
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The banks seem to be having a bit of a resurgence this week. I noticed as my Barclays trade has moved up fairly quickly, so I thought I'd have a look at some of the others. Lloyds Banking Group has caught my eye tonight as it has made a bit of breakout today on a few of my charts. The P&F chart shows its just under a resistance level of 70, but if you look at daily chart you can see it made a breakout above the daily down trend line. However, it is still under the weekly downtrend line and in the weekly cloud, but it has broken out of the daily cloud. So it's a case of short term strength meeting long term resistance. So I'm going to wait for it to pullback a bit to around the 66 level and then look to get in for a short term swing with a target of 79. So a possible 20% move. Longer term looks interesting as well as Lloyds has been in or under the weekly cloud for around 4 years now and upside resistance is now at 80, so I think there could be longer term up move to trade especially if the government starts to exit some of it's position in Lloyds soon. So I might put a speculative longer term position on at the same time.
Attached are my charts
The banks seem to be having a bit of a resurgence this week. I noticed as my Barclays trade has moved up fairly quickly, so I thought I'd have a look at some of the others. Lloyds Banking Group has caught my eye tonight as it has made a bit of breakout today on a few of my charts. The P&F chart shows its just under a resistance level of 70, but if you look at daily chart you can see it made a breakout above the daily down trend line. However, it is still under the weekly downtrend line and in the weekly cloud, but it has broken out of the daily cloud. So it's a case of short term strength meeting long term resistance. So I'm going to wait for it to pullback a bit to around the 66 level and then look to get in for a short term swing with a target of 79. So a possible 20% move. Longer term looks interesting as well as Lloyds has been in or under the weekly cloud for around 4 years now and upside resistance is now at 80, so I think there could be longer term up move to trade especially if the government starts to exit some of it's position in Lloyds soon. So I might put a speculative longer term position on at the same time.
Attached are my charts
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I see what you mean by Lloyds. If it can blow through 70p it should perhaps test the 70p level as support then have a good run up to 80p+. Might do an SB on it, can get guaranteed stops on shares with IG index. May consider £20/pt from 69p, stop @ 63p, target @ 80p+.
isatrader
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80p looks like quite a strong resistance level and there is also weekly cloud resistance there, so I'd imagine it would have some trouble getting through it. Also earnings haven't come out yet, Results for 2010 are announced on Feb 25 so some caution is needed. I'm personally looking to see what the volume is like on a pullback to see whether the sellers are exhausted or if they've still got some life in them.
I would tend to agree this is a bit of a "gamble". Any wiff of bad news in Results and down it goes... equally a "rosier" picture then off it flies to 80...
isatrader
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Yep I agree. If you do play this, I'd personally get out before earnings as it's too much of a gamble otherwise.
isatrader
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Yep am still in. The limit order I placed yesterday got me in near the high of the day, but the days price action closed above the downtrend line so I think it's still on target and hopefully will hit my target in the next week or so.
isatrader
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You were just being sensible as the 7400 level has been a strong pivot all week, and you've done really well trading around it.
