Technical analysis: levels to watch for Lloyds, Aberdeen and Hargreaves

Financial stocks have been on the move in London this week, writes IG analyst Chris Beauchamp, and there are some key technical levels to keep an eye on.

Aberdeen Asset Management was hit after hefty outflows in its emerging market funds, while the sell-off in equity markets around the globe hit Hargreaves Lansdown, and Lloyds Banking Group shares bounced after good results that were relatively encouraging and offered hope of improved yields in years ahead.

After such big moves, what are the key technical levels to watch for these shares?

Aberdeen Asset Management

Evidently £5 is too much for these shares to bear, as a brief surge through the 2013/2014 high was knocked back in April.

Following this the shares fell through the rising trendline that had provided support during their ascent in the first quarter of 2015.

Heavy losses saw them bounce off 420p, which had been support during the beginning of February, and, crucially, move back above the 200-day simple moving average (440p).

The first target is now the 450/460p area, which proved to be resistance in mid-2014, while a break through here would target the rising trend-line that was lost at the end of April, and then back on to £5.

A failure to maintain the bounce off 420p would target lows around £4, which proved to be excellent support during the latter half of 2014.

Hargreaves Lansdown

After a tough 2014, when the shares fell relentlessly after reaching all-time highs, 2015 began in a better fashion.

A steady rally was helped by rising equity markets around the globe, which encouraged investors to move back into stocks.
But fundamental sentiment has still been struggling after news last month that one of its founders was stepping down.

For now, the rally has been stalled at £12.50, which was resistance in both March and April.

Recent weakness has seen the share price fall below the 50-day moving average (the blue MA), but for the time being buyers have stepped in around the £12 level.

Further support is possible around £11, the lows of March 2015.

Any break above £12.50 would target £13 and then on to the £15 level from early 2014.

Lloyds Banking Group

Lloyds shares have been stuck between 70p on the downside and 85p on the upside since the beginning of 2014.

Dips towards 70p, and even 72/73p, saw buyers step in, while any move above 80p was usually a cue for sellers to do their work.

The recent set of results however sent the shares moving well beyond 80p, as far as 84p.

The beginning of May saw a bounce off the 50-day moving average, and a continuation of price action above 82p would signal that a test of 85p is on the cards.

A failure to hold above 80p would suggest that we are back to the range-bound trading of last year, with support at 72p and then 70p.

Follow Chris on Twitter @ChrisB_IG