Legal & General Group plc Stock Forecast
Legal & General Group plc stock downgraded from Buy Candidate to Hold/Accumulate after Friday trading session.
(Updated on May 03, 2024)
The Legal & General Group plc stock price gained 2.16% on the last trading day (Friday, 3rd May 2024), rising from £235.80 to £240.90. During the last trading day the stock fluctuated 3.24% from a day low at £234.30 to a day high of £241.90. The price has risen in 6 of the last 10 days but is still down by -1.51% for this period. Volume fell on the last day by -10 million shares and in total, 10 million shares were bought and sold for approximately £2.30 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock is moving within a wide and horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect Legal & General Group plc stock with a 90% probability to be traded between £237.29 and £262.69 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
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LGEN.L Signals & Forecast
There are mixed signals in the stock today. The Legal & General Group plc stock holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term Moving Average at £247.19. On a fall, the stock will find some support from the short-term average at £236.10. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). A buy signal was issued from a pivot bottom point on Thursday, April 25, 2024, and so far it has risen 3.48%. Further rise is indicated until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.
Support, Risk & Stop-loss for Legal & General Group plc stock
Legal & General Group plc finds support from accumulated volume at £235.80 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved £7.60 between high and low, or 3.24%. For the last week, the stock has had daily average volatility of 2.16%.
Our recommended stop-loss: £229.56 (-4.71%) (This stock has medium daily movements and this gives medium risk. There is a buy signal from a pivot bottom found 6 days ago.)
Trading Expectations (LGEN.L) For The Upcoming Trading Day Of Tuesday 7th
For the upcoming trading day on Tuesday, 7th we expect Legal & General Group plc to open at £239.03, and during the day (based on 14 day Average True Range), to move between £234.64 and £247.16, which gives a possible trading interval of +/-£6.26 (+/-2.60%) up or down from last closing price. If Legal & General Group plc takes out the full calculated possible swing range there will be an estimated 5.20% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at £243.30 (1.00%) than the support at £235.80 (2.12%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Legal & General Group plc stock A Buy?
Legal & General Group plc holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.
Current score: -0.194 Hold/Accumulate Downgraded
Predicted Opening Price for Legal & General Group plc of Tuesday, May 7, 2024
| Fair opening price May 7, 2024 | Current price |
|---|---|
| £239.03 ( 0.775%) | £240.90 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for LGEN.L
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 246.63 | 2.38 % | |
| R2 | 243.73 | 1.17 % | ||
| R1 | 241.94 | 0.430 % | ||
| Current price: | 240.90 | |||
| Support | S1 | 236.13 | -1.98 % | |
| S2 | 234.34 | -2.72 % | ||
| S3 | 231.43 | -3.93 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 245.40 | 1.87 % | |
| R2 | 243.90 | 1.25 % | ||
| R1 | 243.30 | 1.00 % | ||
| Current price | 240.90 | |||
| Support | S1 | 235.80 | -2.12% | |
| S2 | 233.80 | -2.95% | ||
| S3 | 232.80 | -3.36% |
LGEN Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Apr 25, 2024 | Apr 25, 2024 | Jun 06, 2024 | £14.63 | 6.07% |
| 2 | Aug 24, 2023 | Aug 24, 2023 | Aug 24, 2023 | £5.71 | 2.66% |
| 3 | Mar 08, 2023 | Apr 27, 2023 | Jun 05, 2023 | £13.93 | 5.94% |
| 4 | Aug 09, 2022 | Aug 18, 2022 | Sep 26, 2022 | £5.44 | 2.25% |
| 5 | Mar 09, 2022 | Apr 21, 2022 | Jun 01, 2022 | £13.27 | 5.19% |
FAQ
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