Lloyds Banking, RBS, Barclays - Latest Technicals

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Stock market rallies may come and go, but in the recent past it has been only one way for the big banks as far as their share prices are concerned, and that is to the upside. This is hardly surprising given that the Government not only bailed them out after they gambled on the financial / real estate markets and lost some six years ago, but we the little people of course have a moral obligation to make good these losses in an unquestioning fashion. Therefore, to celebrate the revival of these wonderful institutions it seems appropriate to take a look at the charting position of Lloyds Banking, RBS and Barclays.

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Lloyds Banking (LSE:LLOY): Towards 70p

Looking at Lloyds first, and it can be seen that there has been a rising trend channel on the daily chart since May last year, with the floor of the channel currently running level with format initial 2013 resistance at 56p. The overall view here is that while there is no weekly close back below 56p Lloyds remains in an uptrend and could stretch significantly higher with the one-year resistance line projection and 67p currently the favoured 1 to 2 month target. Those who wish to trade stock more closely would be looking to buy on any dips towards 20 day moving average currently at 59.5p, with only sustained price action below this level suggesting that there was going to be a delay in the upside scenario.


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RBS (LSE:RBS): 400p In Focus

Moving onto RBS, and it would appear that in some ways we have a charting configuration which is even more constructive looking than Lloyds Banking described above. This is said on the basis that so far late May support has come in a full 20p above the initial May resistance at 304p. Such a wide gap between former resistance and new support is unusual, and one would expect it to be narrowed over coming sessions. However the implication of what we have seen over the past couple of weeks is a Bull flag/ mid-move consolidation which could be the forerunner of a fresh leg to the upside and a best case scenario target at the top of a July rising trend channel from last year 400p. The timeframe on such a move could be as soon as the next 6 to 8 weeks. At this stage only sustained price action back below £3.24 late May support would even begin to delay the prospect of a sharp fresh move to the upside.


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Barclays (LSE:BARC): As High As 380p Targeted

As far as Barclays is concerned we have a very similar share price currently to that of RBS, and actually quite a similar charting configuration as well. This is said on the basis of a rising trend channel on the daily chart in place since July last year, with the floor of the channel currently running level with the 50 day moving average and 301p. Overall we would be looking for further gains towards the top of last’s channel as high as £3.80 over the course of the summer. At this stage any weakness towards the 50 day moving average zone can be regarded as a buying opportunity with only a weekly close back below last year’s support line really suggesting that the rally since last summer which has already seen the shares more than double, is set to fizzle out.


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