Lloyds Share Price Analysis: LLOY Is About To Make It Rain

Lloyds (LYG) share price has bounced back well in the past few weeks as investors wait for the Telegraph windfall. The shares soared to a high of 44.50p on Friday, the highest point since October 17th. They have soared by over 3% from the lowest point in November. Telegraph windfallLloyds Bank stock did well in November as the market focused on the Telegraph and Spectator issue. The biggest story of the week was the government’s decision to allow the Barclays family to pay its £1.2 billion loan. The government will still continue investigating the family’s decision to transfer the entity to a group from Abu Dhabi. This means that Lloyds will be in line to receive a £500 million windfall if the deal concludes.This is an important development because Lloyds Bank had already written off the funds. Therefore, it will be free to use these funds as it wishes. One way it will do this is to offer a special dividend or buy back its stock.Lloyds Bank could also decide to use part of the funds to shore its balance sheet and even make a strategic acquisition. The chances of the latter happening are small. Therefore, the more than 2 million retail investors are sure to get some cash from the deal.The most recent results showed that Lloyds Bank is printing cash, helped by higher interest rates and lower delinquencies. The company’s statutory profit after tax jumped to over £1.4 billion in the third quarter. Its underlying net interest income in the first nine months of the year jumped by 10% to £10.4 billion. Delinquencies were modest considering that the British economy is not doing well. They rose to £0.8 billion as loans advanced to customers fell to £2.8 billion. Many customers are avoiding loans because of the relatively high interest rates.The key challenge for Lloyds and other British banks is that many customers are shifting their deposits to higher-yielding short-term government bonds. Lloyds share price forecastTurning to the daily chart, we see that the LLOY stock price has bounced back after falling to a low of 39.51p in November. This was an important level since it was the lower side of the descending channel.The stock has also jumped above the 50-day and 100-day Exponential Moving Averages (EMA). At the same time, the Relative Strength Index (RSI) has risen and is nearing the upper side of the descending channel.Lloyds stock has also soared above the Woodie pivot point. Therefore, the outlook for the stock is mildly bullish as buyers target the first resistance point of the Woodie pivot point at 45.67p. The alternative is a situation where the shares retreat and retests the pivot point at 42.75p.More By This Author:Axios Editor Shares View On Disney Reinstating Dividend After Three Years
Fed Chair Powell Speaks: ‘Markets Are Still In A Good Place’
Hologic Stock Price Bounced Back: What’s Next For HOLX?