Will Centrica break support, or will it rise again to 137p?

• Shallow rising support since November
• 4 bounces, most recently today, to trade 132p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 137p?
• Shares -20.3% from 2018 highs; +6.5% from 2018 lows; -2.2% year-to-date.
• 7 Jan: Centrica shares shrug off Jefferies warning about credit rating.
• 7 Jan: Centrica borrowing costs falling as it keeps investment-grade rating.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Centrica – An Example

Let’s say you like the Centrica chart and you think the price is heading back towards 137p again. You decide to buy exposure to £10,000 worth of Centrica using a CFD, at the current price of 132p. To do this, you need £2,000.

Let’s assume Centrica rises back to 137p (+3.8%). Your profit would be £380, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Centrica falls 2% and hits your stop-loss. Your loss would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.