Metro Bank share price: downtrend looks to provide shorting opportunity
Metro Bank has been on the slide over the past year, and until we see otherwise, further shorting looks the best bet for now.
Metro Bank shares continue rollercoaster ride
Metro Bank shareholders have been on a rollercoaster the past three years, with the challenger bank's share price gaining 86% over the first year after its initial public offering (IPO), only to decline 94% in the 17 months that followed. That has seen the shares hit a record low every week for the past six weeks.
This week is no different, with the weekly chart highlighting this incredible downtrend. That downtrend has been incredibly reliable, yet recently the price action has been relatively subdued as exhibited by the tightening Bollinger band. That points towards a potential rebound coming into play before long, yet even if that does occur, we would need to see a break through the £8.96 resistance.
Downtrend presents shorting opportunity
The hourly timeframe highlights the finer details of this downtrend, with the price creating lower highs and lows on a regular basis. With that in mind, we have a clear threshold at £2.99 which must be overcome to bring a bullish short-term signal. Until that happens, short-term upside can bring a good selling opportunity within the Fibonacci retracement zone of £2.82-£2.91.
Interested in shorting stocks? Find out more on how to do this with IG, or open an account to get started.
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