Will Centrica continue falling, or will it rise again back to recent 156p November highs?

• Centrica shares have fallen over 9% today to trade 132p (at time of writing).
• Shares -19.8% from 2018 highs; +7.3% 2018 lows; -3.4% year-to-date.
• Owner of British Gas said it expects a hit to operating profits from UK tariff caps of £70m in Q1 2019.
• Recent share price range: Nov highs 156p; now trading near at recent lows.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Centrica – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 156p. 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 £2000.

Let’s assume Centrica recovers back to 156p (+18.2%). Your profit would be £1820, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Centrica falls 8% and hits your stop-loss. Your loss would be £800.

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