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 late November.
• Shares in a 3 week downtrend from 2246p recent highs; now at 1695p.
• Shares -58.1% from 2018 highs; +1% from 2018 lows; -52.6% year-to-date
• Shares in a downtrend since Metro Bank’s reported (24 Oct) that Q3 profit missed market expectations amid a shriking net interest margin.
• In the last 3 weeks, the shares have fallen over 24%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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 1695p. To do this, you need £2,000.

Let’s assume Metro Bank trend continues to 1496p 2016 lows (-11.74%). Your profit would be £1174, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Metro Bank rises 9% 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.