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Are UK banks ‘raging buys’ after this week’s results?

Last updated: 16:23 28 Oct 2016 BST, First published: 12:36 28 Oct 2016 BST

Lloyds bank branch, UK highstreet
Is Lloyds heading for 61p? Can Barclays reach 230p?

As surprising as it may sound UK banking shares are a “raging buy”, according to the share price charts at least.

Tip TV technical analyst Zak Mir today put the spotlight on Royal Bank of Scotland Plc (LON:RBS), Lloyds Banking Group Plc (LON:LLOY) and Barclays Plc (LON:BARC) – and each of three showed a degree of positivity.

Closer attention reveals RBS ‘squeezed higher’ despite results showing another tough period, while Mir says Barclays is showing an accelerating rising trend that has already hit a number of key technical markers.

Lloyds, meanwhile, look like going higher – which as he notes makes it look like the UK government’s recent decision to sell off more of its bail-out shares may have been badly timed.

Mir’s analysis comes at the end of the week that all three reported their latest financial performances.

RBS this morning warned Friday it won’t hit cost and return targets to the time-table set out two years ago. It blamed the “low interest rate, low growth environment”, which it said presented “range of uncertainties, which could impact on the performance of the key business”.

For the three months ended September, the state-owned lender posted adjusted operating profits of £1.33bn, up from £716mln previously.

On Thursday, Lloyds showed that the payment protection insurance albatross is still hanging around its neck, but, it reported steady net interest income at £2.85bn versus £2.86bn the previous year.

And Barclays’ third quarter profits came in ahead of expectations, rising 35% from the prior year to £837mln.

Like Lloyds, the payment protection insurance mis-selling issue shows no signs of going away but the group’s dollar earning investment banking operation was a notable positive for the group.

See Zak Mir’s stock-by-stock analysis below.

RBS squeezes higher

 

 

Tip TV’s Zak Mir highlights the ‘squeeze higher’ in Royal Bank of Scotland Plc (LON:RBS) shares ahead of today’s results from the bank that is still being propped up by the Government.

He notes that the RBS loss, revealed this morning, was bigger than the market expected.

“The actual core business is probably what analysts are looking at here. The highstreet, normal straightforward activities are doing well, and that is offsetting the pain and misery.”

 

Lloyds Banking Group shares are making a run higher

 

 

Lloyds Banking Group Plc (LON:LON) shares are making a run higher, according to chartist Zak Mir, who reckons the price will soon rise to 61p.

Mir, in a Tip TV segment for Proactive Investors, notes that the bank’s shares have squeezed higher and have hit a number of significant technical markers along the way.

In fact, he says this is a particularly key moment for the Lloyds chart. He added: “[the shares are] at the break of the 50-day moving average at 56p, it does look as though there’s a little bit of a run to the upside.”

 

Barclays tipped to hit 230p per share in coming weeks

 

 

Barclays Plc (LON:BARC) shares can rise to 230p, says technical analyst Zak Mir, who highlights a number of strong buy signals in the bank’s chart.

For some traders there’s likely hesitancy over trading banking shares, but Mir says look at the chart and ask yourself: “what if you didn’t know anything about the company, what would you do here?”

Mir, in a Tip TV segment for Proactive Investors, says Barclay’s has shown an uptrend and its rise is accelerating. And he reckons the price can go to 230p in the next month or two.

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