Will Centrica continue falling, or will it rise again back to recent high of 140p?

• Centrica shares -13% today after disappointing results.
• Utility company missed earnings expectations and forward guidance was weak.
• Shares trade their lowest levels since February 2003.
• Now trades 121p (at time of writing).
• Shares -13.5% from 2019 highs; now trades at 2019 lows; -9.7% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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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 high of 140p. You decide to buy exposure to £10,000 worth of Centrica using a CFD, at the current price of 121p. To do this, you need £2,000.

Let’s assume Centrica recovers back to recent high of 140p (+15.7%). Your profit would be £1570, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Centrica falls 7% and hits your stop-loss. Your loss would be £700.

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