Lloyds share price cup and handle points to more upside

The Lloyds (LON: LLOY) share price has been relatively unchanged in the past few weeks as investors reflect on its recent performance. The stock is trading at 49.68p, which is a few points below the year-to-date high of about 51p.

Lloyds Bank performance

The Lloyds share price has done relatively well this year. It has risen by more than 53% year-to-date. This makes it one of its most successful year in recent memory.

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There are several reasons for this performance. First, the bank has reported relatively strong results this year. These results have been helped by both organic growth. Like other banks, it has managed to bring forward the losses it set aside last year at the height of the pandemic.

Second, the bank has benefited from the strong recovery of the UK economy. As a mostly domestic bank, Lloyds is usually highly correlated with the performance of the economy. 

In the past few months, data from the UK has painted a picture of an economy that is growing rapidly. For example, the labour market has tightened and inflation has risen. At the same time, consumers have shrugged high prices and boosted their shopping.

Most importantly, the Lloyds share price has jumped because of the performance of the real estate sector. Demand for homes in the UK has jumped sharply, pushing prices to a record high. Since the pandemic started, the average home price in the UK has jumped by more than 20,000 pounds.

The LLOY share price has also done well as investors hope for higher interest rates. The strong numbers have pushed many analysts to believe that the Bank of England (BOE) will hike in the coming months. The bank has already provided hints about this tightening. Banks like Lloyds do well in a period of high rates.

Lloyds share price forecast

The daily chart below shows that the Lloyds stock price has moved sideways in the past few weeks. The shares have struggled moving above the key resistance at 51. It has also formed what seems like a cup and handle pattern. 

The stock has moved above the ascending trendline and the 25-day moving average. Therefore, because of the cup and handle pattern, there is a possibility that it will break out higher in the coming months. 

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