Centrica (owner of British Gas)
A trading opportunity for you?
Will Centrica break support, or will it rise again to 103p?
- Support at 92.5pa after sharp drop on nationalisation fears
- Now trading 93.9p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 103p?
- Shares -33.2% from 2019 highs; +1.8% from 2019 lows; -30.4% year-to-date.
- 13 May: Profits guidance confirmed
- 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 to 103p again. You decide to buy exposure to £10,000 worth of Centrica using a CFD, at the current price of 93.9p. To do this, you need £2,000.
Let’s assume Centrica rises back to 103p (+9.6%). Your profit would be £960, 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.