Lloyds share price has been on a downward momentum for the past week. At the time of writing, it was trading 1.20% lower at 44.090. Lloyds’ total market capitalization stands at £31.36 billion. The company is one of the biggest financial services organizations in the UK.
The Lloyds share price started the week on the back foot as it welcomed its new Chief Executive Officer, Charlie Nunn. Nunn was serving as the head of wealth and personal banking at HSBC. Nunn took over Lloyds from Antonio Horta-Osorio, who will be moving to Credit Suisse as its new Chairman.
Nunn’s role at the Lloyds Banking Group started at a rock start. The company’s shares have slipped more than 6% since he assumed office on Monday. However, the stock continues to trade in a range-bound consolidation since mid-June.
Nunn is expected to steer the bank to success. Lloyds Banking Group recently announced its plans to become one of the biggest landlords in the UK. The company plans to purchase 50,000 homes in the next decade and rent them out as a private landlord. Based on the current property prices, this would generate pre-tax profits of almost £300 million.
The banking giant has seen its shares jump more than 27% since the start of the year. Economists have linked its increase to the improvement in UK’s economy. The UK’s economy expanded by 4.8% in the second quarter.
The 4-hour chart indicates that the Lloyds share price is a negative trend. It hit an intraday high at 44.415 before pulling back.
It is trading below the 50 and 100-day moving averages, which is a bearish indicator. Its Relative Strength Index (RSI) is at 29, which is in the oversold region, supporting the bearish view.
More weakness will be demonstrated once the company’s shares move past July’s low at 43.20. However, a move past the 50 and 100 DMAs at 46.105 will invalidate this view.