Chart guru Zak Mir reckons Lloyds Banking Group Plc (LON:LLOY) can keep coasting in a relative comfort zone, even though the government’s stake remains a cap on the share price.
Noting the taxpayer’s breakeven price of 73p, he says: “There’s a distressed seller up there … but at these levels Lloyds can coast along for quite some time.”
Mir, in a Tips TV segment for Proactive Investors, highlighted that investors in Lloyds will feel as though it is an “oasis of safety” in a sector gripped by fear.
WATCH: Zak’s analysis right now
Looking at the Lloyds chart the technical analyst says: “we’ve really been trading sideways.”
“Interest I think comes in towards the 50p level, it is a key psychological area. I wouldn’t say I was looking for great upside here, but maybe towards the 65p area.”
Mir acknowledges the Lloyd’s chart was a bit of a mess, but, he reckons if the bank’s price was going to fall it probably would’ve dropped below 50p already.
“We’ve got higher lows there for September versus August, so give it the benefit of the doubt at the moment.”