Centrica (owner of British Gas)
A trading opportunity for you?
Will Centrica break support, or will it rise again back to highs of 140p?
- Centrica has shallow rising support since February
- 4 bounces off support zone, latest off 129p this week.
- Now trading 132p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 140p?
- Shares -6.2% from 2019 highs; +1% from 2019 lows; -1.8% year-to-date.
- 7 Jan: Centrica’s share shrugging off Jefferies warning about its credit rating.
- 7 Jan: Centrica’s borrowing costs actually falling as the British Gas owner keeps its investment-grade rating.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Centrica – An Example
Let’s say you like the Centrica chart and you think the price is heading back towards 140p 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 140p (+6%). Your profit would be £600, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Centrica falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.