Metro Bank (LON: MTRO) share price has been in a tailspin since the US banking crisis unraveled. From their peak in March 2023, the shares are currently 36.7% down. After a 10% bounce, the shares of Metro Bank are once again retesting the key psychological level of 100p.
After a steep fall in March 2023, shares of major UK banks have significantly recovered from their lows. However, Metro Bank shares are still lagging in the recovery despite a surge in FTSE 100 index. The benchmark index gained 60 points on Wednesday as most of its constituents, including top banks, showed a positive price action.
The US CPI report for March 2023 was released today. The consumer price index showed that inflation in the US decreased on yearly basis. The YoY inflation came at 5.0% against the market expectations of 5.1%. The markets took the figure positively, and the UK shares extended their gains. Nevertheless, Metro Bank share price remained red and was down 1.84% till press time.
According to the most recent Metro Bank news, the major American advisory company, Glass Lewis, has urged the bank’s shareholders to vote against the proposed increase in the salaries of the top executives. As per Glass Lewis, the 20% salary hike is not justified as compared to only a 5% increase given to the rest of the staff. Anticipating a backlash, CEO Daniel Frumkin has waived the increase till January 2024.
The LON: MTRO chart shows a sideways price action around the 200-day moving average. The shares bounced after tagging this key indicator at the end of March but couldn’t get momentum. Consequently, the stock price is once again retesting the 200-day MA, which currently lies at 101.1p.
The presence of a 200-day moving average close to the key psychological level of 100p has made it even more critical. A weekly closure below 100p will make the Metro Bank share price very bearish. In such an event, a retest of the October 2022 lows will be on the cards, which lie at 68p. Before this level, the 0.786 fib retracement level at 86.8p might also provide some support.
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This post was last modified on %s = human-readable time difference 16:06