The Lloyds (LON: LLOY) share price has been in a tight range in the past few days. The stock is trading at 47.80p, which is slightly below last year’s high of 51.55p. It has risen by more than 108% above the lowest level in 2021.
Lloyds Bank outlook
Lloyds Bank is a leading financial institution in the United Kingdom that operates several brands like Halifax, Bank of Scotland, MBNA, and Black Horse, among others.
The bank had a stellar performance in 2021. This growth was mostly because of the strength of the housing market in 2021 as demand kept rising and inventories remained being subdued. In all, home prices jumped to a record high in most parts of the UK economy.
The strength of the housing market is a positive thing for Lloyds Bank because of its strong presence in the industry. It is the biggest mortgage lender in the UK.
Lloyds Bank also did well as its net income grew. The performance of the bank’s net income was mostly because of the strong recovery of the UK economy. Also, the company managed to bring back some of the losses it provisioned in 2020 amid the global pandemic.
Another key development is that Lloyds Bank got a new Chief Executive Officer (CEO) from HSBC Bank. The new CEO is seeking to continue with his predecessor’s strategy of doubling down in the real estate industry. The bank hopes to become the biggest landlord in the UK in the next few years.
He also intends to become the leading player in wealth management. That includes using the bank’s newly acquired Embark.
The Lloyds share price will react to the overall strategy of the CEO that will be unveiled in the first quarter. Also, it will be affected by the strength of the housing market.
Lloyds share price forecast
The daily chart shows that the LLOY share price has been in a bullish trend in the past few months. The stock has struggled moving above the key resistance level at 51.55, which was the highest level in 2021. It remains slightly above the 25-day and 50-day moving averages and the ascending trendline that is shown in red. The MACD has also moved above the neutral level.
Therefore, the Lloyds share price will likely keep rising as bulls target the key resistance level at 55p. On the flip side, a drop below 40p will invalidate this view.