Make sure you indent the <img>
tag. It is part of the body, !DOCTYPE
has no closing tag , and use {% load static %}
Before !DOCTYPE
for ease of use. Also, like @Gaurav said, make sure that your settings have a static url and a dir for the files.
Here is the HTML fixed:
{% load static %}
<!DOCTYPE html>
<html>
<head>
<title>TEST</title>
</head>
<body>
<h1 >Blog Home!</h1>
<img src ="{% static 'images/imgtest.jpg' %}" />
</body>
</html>
If you still have problems, refer to This Website (docs).