Will Metro Bank continue falling, or will it rise again back to 2250p?

• Metro Bank shares have fallen almost 30% in the past month to trade 1650p (at time of writing).
• Shares -60.3% from 2018 highs; +0.7% from 2018 lows; -54.0% year-to-date.
• Can the stock regain recent highs?
• Metro is a UK challenger bank
• 19 Dec: Metro among digital banks allowed to incentivize customers to switch away from RBS
• 25 Oct: Metro Bank could become takeover target says Goodbody
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Metro Bank – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to 2250p. You decide to buy exposure to £10,000 worth of Metro Bank using a CFD, at the current price of 1650p. To do this, you need £2,000.

Let’s assume Metro Bank recovers back to 2250p (+36%). Your profit would be £3,600, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Metro Bank falls 5% and hits your stop-loss. Your loss would be £500.

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