Barclays plc, Lloyds Banking Group plc: Short term forecasts for LLOY and BARC stock show differing fortunes

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Category: Share Price Drivers

Published on Thursday, 07 February 2013 09:13

Written by Will Peters

Article Brief: Where to next for two of the most popular stocks amongst global retail investors + latest market news.

Shares in Focus: Barclays PLC (LON:BARC) + Barclays PLC (ADR)(NYSE:BCS) + Lloyds Banking Group PLC (LON:LLOY) + Lloyds Banking Group PLC (ADR)(NYSE:LYG)

The picture for BARC in the near term is more constructive than fellow bank Lloyds with the upside forecast to prevail should 245 is not broken lower.

Trading Central say they favour an upmove with 311 and then 338 as next targets, "the ascending 50-day moving average suggests that the stock still has potential for a rise."

Is Lloyds Banking Group plc at the end of a multi-month rally, or is this the consolidation phase before the next leg up?

Latest news items: Outlook for Bank of Ireland (ADR) and Banco Santander, S.A. (ADR) turning bearish: SAN and IRE charts suggest further gains will be increasingly hard to achieve - 21/05/2013 11:14 Outlook for Research In Motion Ltd and Nokia Corporation (ADR): BBRY sours, NOK set to continue a recent strong run higher - 21/05/2013 11:03 G4S plc : GFS shares slump after firm start; but retain 18-month shallow rising support around 246p - 21/05/2013 09:47 Forecasts for BP plc and Royal Dutch Shell Plc : RDSA and BP both tipped to yield further gains for investors on technical considerations, momentum waning - 21/05/2013 09:26 Silver prices take a drubbing as sell stop orders below April’s low; technical orders reinforce downtrend - 20/05/2013 14:08

Analysts at Trading Central say they are bearish in the short-term; should LLOY remain below a pivot at 54 then a move towards 46.75 is possible.

Trading Central do however note that, "the MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside."

The bank's New York listed stock - NYSE:LYG - is under similar short-term pressures with key resistance at 3.41 and analyst saying they are targeting 2.95.

"The RSI is below its neutrality area at 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the stock is below its 20 day MA (3.37) but above its 50 day MA (3.17)," say Trading Central.

Markets open flat - busy day ahead on the data front

The FTSE 100 flat to slightly higher this morning as markets focus on domestic and European matters with a full economic diary. It kicks off with UK manufacturing and industrial production plus trade balance figures, incoming Bank of England Governor Mark Carney's first appearance in front of the Treasury Select Committee and day 1 of the European Economic Summit.

This is followed at midday by the Bank of England interest rate statement which is expected to leave the rate unchanged, the ECB meeting outcome and press conference together with the latest US weekly jobless claims. Any comments from the ECB President will be noted with interest against the backdrop of the ongoing European political tensions.

Commodity prices are mixed but trading within narrow ranges and on the foreign exchanges, sterling is up slightly against the dollar and down against the euro ahead of this raft of news.

Pintrest valued at a hefty 1.5 BN USD

The online scrapbooking start-up behind one of the internet’s fastest-growing websites is seeking new funding that would value the company at up to $2.5 billion — despite not yet having worked out how to make money. The astronomical valuation of Pinterest is based on the belief held by the two-year-old company and its investors that it can transform its millions of users into a working business model.

Pinterest is a photo-sharing social network that allows people to create a virtual pinboard of things they have spotted on the web. The new funding is designed to help the company to work out a way of making revenues, with Pinterest believed to be ready to test ways to turn its huge traffic into sales. [The Times]