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Metro Bank’s share price has been on a downward slide since the US banking crisis began. From its peak in March 2023, the shares have dropped by 36.7%. Although there was a brief 10% rebound, the stock is now testing the crucial psychological level of 100p once again.
While major UK banks have rebounded significantly since their lows in March 2023, Metro Bank is still struggling despite the FTSE 100 index seeing a rise. On Wednesday, the FTSE 100 gained 60 points as many of its constituent stocks, including leading banks, showed positive movement.
Today’s US CPI report for March 2023 revealed a decrease in yearly inflation, coming in at 5.0% compared to the expected 5.1%. The market reacted positively, which helped UK shares extend their gains. However, Metro Bank’s share price continued to fall, down 1.84% by the end of the day.
Recent news about Metro Bank includes a recommendation from the American advisory firm Glass Lewis. They’ve advised shareholders to vote against a proposed 20% salary increase for top executives, arguing it’s unfair compared to the 5% increase for other staff members. In response, CEO Daniel Frumkin has postponed the salary increase until January 2024.
The LON: MTRO chart shows the stock price fluctuating around the 200-day moving average. After bouncing off this key indicator at the end of March, the shares have struggled to gain momentum and are once again testing the 200-day MA, currently at 101.1p.
The proximity of the 200-day moving average to the 100p level makes it even more significant. If the stock closes below 100p on a weekly basis, it could become very bearish, potentially leading to a retest of the October 2022 lows at 68p. Before reaching this level, the 86.8p Fibonacci retracement might offer some support.
I’ll continue to provide updates on Metro Bank in my free Telegram group, and you’re welcome to join.