Virgin Money UK share price has been in a tailspin due to disappointing full-year results. In consequence, the shares have slipped 12% since the start of this week and there could be more downside in the coming days.
After the recent bearish move, LON: VMUK has plunged back below its previous range highs, which have given the bears much-needed momentum. The recent weakness in the FTSE 100 index is further enhancing the selling pressure on the shares of the financial services firm.
In its full-year results, the holding company of the Clydesdale Bank reported a 42% drop in its pre-tax profit which remained at GBP 345 million against the forecasts of GBP 430 million.
The following chart gives a better understanding of the price action. You can see the red engulfing candle of this week. Such candles often result in bearish continuations. While there can still be a bounce toward the range highs of 156p, the higher timeframe Virgin Money share price forecast remains bearish.
In an extremely bearish scenario, shares may also retest the current range lows which lie below 123p.
