UK 100 index is flat as a washboard year-to-date and is disappointing bullish traders ever since hitting a 7903 record high in late May. I’ve been looking at a few interesting stocks that followed the UK Index down the drain in the Summer. Could a rebound be on the cards?

One interesting name that has fallen a lot lately is Centrica. Shares in the gas utility company (the owner of British Gas) are +4.66% since the beginning of the year but have fallen over 11% in the last 20 trading days ever since its half-year report earlier this week disappointed investors with operating profits 4% below broker consensus (with profits for consumer and business divisions together 12% below expectations).

A few following trading days extended Centrica shares’ downtrend all the way to the low of 141.3p. This matched the levels last seen in mid-May, allowing Centrica share price to find a much-needed support and rebound a couple of pence into the green. Just the first day of the bounce, mind you, so many things can still happen to the shares. But if the 140p support is real and the disappointment over results has already exhausted itself, Centrica shares could be on their way all the way back to 2018 highs.

Another interesting stock that can see a bounce after a recent downtrend is the Mexican silver miner Fresnillo. The miner’s shares are on a falling highs downtrend dating back to July 2016 but is there have been recent signs of share price consolidation, with shares slightly hesitant to break below 995p. There are some technical signs supporting a reversal including a convergence of two support levels (falling and horizontal), as well stochastics breaking above MACD.

But keep in mind, though, that technical indicators are not everything. Fresnillo shares are going “ex-div” next Thursday (with shareholders losing the right to receive dividend after Wednesday). Typically, that means temporary share price fall, often following by a share price recovery. There could be a potential opportunity to pick up the stock several pence lower before taking advantage of the Ex-Div recovery.

With Fresnillo shares down almost 10% in the last 10 trading days, the ex-Div move lower could potentially push the miner’s shares to break below the support levels I mentioned. But there could also decent potential that the typical ex-Div recovery could provide good momentum for shares to bounce back to May highs around 1360p.

Here at Accendo Markets we constantly follow and analyse such tradable opportunities. Where are the support and resistance levels? How much have the shares have risen and fallen in recent days? Are there any events on the calendar that could force shares to move in a certain direction?

All of that is part of our daily effort and we love sharing our insights with our clients. Taking advantage of our expertise is easy. Simply click here to  access our research and trade ideas and become a part of our growing community of investors and traders.

Chris Peters, Trader at Accendo Markets, 3 August 2018