Lloyds Share Price Forecast Looks Negative

Lloyds has recently released its reports for Q2. This has already had consequences for Lloyds’ share price forecast, although not to an extreme degree. The stock has been trading volatilely but in a rather tight range for a week. The bank’s usual reputation as an underdog has failed it this time. Their stocks have dropped by almost 8%.

Even worse for the bank’s stock came with its trouble in the FTSE 100 index. These developments made recovery even less likely than before. The main concern is that the index has not been moving recently. A significant move up could really bolster Lloyds’ stock price, lifting the stock along with it.

Lloyds Share Price Analysis: Disappointing Earnings and Chart Patterns Impact Forecast

The earnings report has been quite disappointing for many, resulting in the stock’s lowest point in a month. Lloyds had losses during this quarter and has used some funds (of £662 million) to cover the losses they experienced. The losses they expect will be from borrowers having difficulty in paying their loans. Such a result was likely due to high interest rates in the UK and the problems with living costs there. Furthermore, the profits before tax were £3.9 billion, falling short of the expectations of £4 billion. There is plenty of worry on any Lloyds share forum.

The returns on their earning assets were low. In Q1, they declined from 3.22% down to 3.14%. Not necessarily a terrible result on its own, but it shows a poor trend, and Lloyds believes that it will continue. The next few months will likely be tough.

It’s worth keeping a look at the chart patterns for Lloyds stock for indications on the Lloyds share price forecast. There has been a noticeable head and shoulders for the stock chart. It is currently experiencing a descent of 4% after passing the neckline. The hope investors will have now is for the price to break the 44.7p price point, after which it may have a breakout. If it does not, further drops are likely to occur. We will have to await further updates in Lloyds share news.