UK banks: where to now for the shares of Lloyds, RBS, Barclays and HSBC?

It was a mixed set of numbers from UK banks for the first quarter (Q1). Brexit continues to weigh on the sector, as might be expected, while RBS has been hobbled by a lack of direction resulting from the search for a new chief executive officer (CEO). Lloyds struggled to match expectations after a heady rise in its share price in the first few months of the year. Meanwhile, Barclays faces difficulty in re-energising its investment bank division, but HSBC enjoyed a better year thanks to its strong Asia focus.

RBS share price – technical analysis

The rally in RBS shares stalled in April, and then following results the share price continued to move lower. The broader rally from the lows of December is still intact, as the 225p area was defended by buyers, forming a key zone of support and a higher low. So long as the price holds this area a move higher is possible, targeting 245p, and then 265p.

A daily close below 225p reverses the bullish view and suggests a deeper retracement, with the 195p area, the lows of December, as a zone of possible support.

Lloyds share price – technical analysis

Lloyds rallied hard throughout the first few months of 2019, but then dropped through trendline support in late April. However, it has for now managed to hold 60p, and this provides a base for a renewed push higher. A rally heads towards the April high at 67p, and the outlook would be supportive of a bullish thesis unless the price drops back below 59p, which would bring 55p and 48p into view.

Barclays share price – technical analysis

Unlike the previous two, Barclays failed to rally in such an impressive fashion over the past few months. It did succeed in moving higher from the December low, but the rally was relatively muted. Dips down towards 152p found buyers in February and March, while the May sell-off has held 155p so far. A further rally targets 170p, which held back progress over the past two months, and then on to 176p.

A reversal below 152p targets 141p, the December low.

HSBC share price – technical analysis

The rally in HSBC took off from mid-March, which saw the price briefly spike above the £6.68 high from the beginning of December 2018. While it then pulled back, it found support at previous trendline resistance from the 2018 highs, at £6.50. Further gains from here target £6.68 and then £7.00. Below £6.50, the price heads towards £6.30 and then rising trendline support from the October low.