Will Centrica continue falling, or will it rise again back to last week’s high of 107p?

• Centrica shares -13.8% since last weeks highs of 107p.
• Utility company missed earnings expectations and forward guidance was weak.
• Shares trade their lowest levels since September 1998.
• Now trades 95p (at time of writing).
• Shares -31.8% from 2019 highs;+3.6% from 2019 lows; -28.8% year-to-date.
• Can the stock recover to last week’s 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 last week’s high of 107p. You decide to buy exposure to £10,000 worth of Centrica using a CFD, at the current price of 95p. To do this, you need £2,000.

Let’s assume Centrica recovers back to last week’s high of 107p (+12.6%). Your profit would be £1260, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Centrica falls 5% and hits your stop-loss. Your loss would be £500.

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