Will Metro Bank continue falling, or will it rise again back to 2218p yesterday’s highs?

• Metro Bank fallen over 25% today.
• The challenger bank missed pre-tax profit expectations (FY’18: 50m vs. 55.4m est.)
• Risk weighted assets jumped +20% from Q3 (£8.9bn vs. £7.4bn)
• Now trades 1593p (at time of writing).
• Shares -28.2% from 2019 highs; trading close to 2019 lows; -4.5% year-to-date.
• Can the stock recover to recent highs?
• 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 could bounce back towards recent high of 2218p. You decide to buy exposure to £10,000 worth of Metro Bank using a CFD, at the current price of 1593p. To do this, you need £2,000.

Let’s assume Metro Bank recovers back to 2218p yesterday’s highs (+39%). Your profit would be £3900, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Metro Bank falls 6% and hits your stop-loss. Your loss would be £600.

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