#France #DowJones Reputedly one of the shares with most short positions, we last reviewed Metro Bank at 99p when we warned of the cost of dog biscuits and the risk of reversal to 60p. In what almost feels like a “clickbait” headline, ‘What Happened Next Will Astound You!’. Okay, we detest that sort of nonsense too, but this very precise reversal is quite interesting, especially for those nursing short positions.
We like to remind folk of the importance we attach to drop targets. What occurred with Metro Bank on 29th September illustrates our level of hysteria quite neatly as the share price finally exactly hit our drop target, closing the day at 60.94p. It neither twitched below the 60p level, nor did it close below our target level. As a result, we’re inclined to believe a new trend has commenced as our “ultimate bottom of 6p” criteria should no longer be valid. When targets are met, we assign considerable importance to price movements on the day of success and Metro DID NOT break target.
This results in a situation where we’re pretty far from convinced further extreme reversals are on the cards, especially as the share price has tended to muck around aimlessly since hitting our 60p level. While we must concede it has drifted, almost teasingly, below the 60p point on a few occasions, we wonder if this is a symptom of the market playing games with traders positions? By adopting the attitude a new trend has commenced, about the safest reversal potential is of below 58p bringing a trip down to 52p and hopefully a proper bounce. This, obviously, does not represent a killer short position.
Visually the share price is doing a pretty good impression of a chart pattern known as a ‘Double Bottom’, one which is often assumed to herald a coming bounce. In the case of Metro Bank, we need see the share price above 72p to be convinced as this calculates with an initial ambition of 83p. Visually this should challenge the ruling downtrend. If exceeded, our secondary computation works out at 96p and probable hesitation. Only with closure above 96p shall we dare become enthusiastic for its future.
FUTURES
| Time Issued | Market | Price At Issue | Short Entry | Fast Exit | Slow Exit | Stop | Long Entry | Fast Exit | Slow Exit | Stop | Prior |
| 9:46:57PM | FTSE | 5768 | Success | ||||||||
| 9:49:35PM | BRENT | 41.98 | ‘cess | ||||||||
| 9:52:10PM | GOLD | 1924.77 | ‘cess | ||||||||
| 10:09:52PM | FRANCE | 4833 | 4833 | 4802 | 4752 | 4870 | 4898 | 4924.5 | 4955 | 4865 | Success |
| 10:12:15PM | GERMANY | 12555 | ‘cess | ||||||||
| 10:19:48PM | US500 | 3439 | |||||||||
| 10:21:49PM | DOW | 28258 | 28190 | 28122.5 | 28012 | 28320 | 28476 | 28542.5 | 28660 | 28280 | |
| 10:23:59PM | NASDAQ | 11702 | |||||||||
| 10:26:33PM | JAPAN | 23554 |
