Technical Analysis Snap: L&G drops on dividend cut

4th Aug 2009 10:56

Legal & General's decision to slash its dividend by 45%, as operating profits collapsed by 92% to just £31m, have weighed on the share price in early trade. As one of the bigger fallers in the insurance sector last year, it has made a limited recovery since its March lows. However it has, as yet, failed to recover above its April highs, and has run up against price resistance from the March 2008 highs.There is a support line coming in from the March lows of 20.90p at 54p, while a break above the highs around 70p is required to improve the longer term prospects for this stock.For periodic TA updates follow me on TwitterAlso read my Investors Guide to Technical Analysis and Level 2