Is this trend a good trading opportunity?

Will Metro Bank turn, or will it continue to fall to 2016 lows of 1,496p?

• The chart shows the Metro Bank price action since March.
• Shares in a month-long downtrend from 3,088p September highs; now at 2,407p.
• Shares -38.36% from 2018 highs; now trading at 2018 lows; -32.84% year-to-date
• In the last 3 weeks, the shares have fallen over 20%. Will this momentum continue?

Click to enlarge

Trading Metro Bank – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Metro Bank using a CFD, at the current price of 2,407p. To do this, you need £2,000.

Let’s assume Metro Bank trend continues to 1,496p 2016 lows (-37.8%). Your profit would be £3,780, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Metro Bank rises 10% and hits your stop-loss. Your loss would be £1,000.

This is provided for information purposes only. It should not be taken as a recommendation.