Will Centrica continue falling, or will it rise again back to 139p Friday highs?

• Centrica share price has fallen close to 6% from Friday highs.
• Utility company downgraded by broker Jefferies from Buy to Hold (target price lowered to 125p)
• Now trading at 131.2p (at the time of writing).
• Shares are -1.5% from 2019 highs, +3.5% from 2018 lows; -2.85% year-to-date.
• Can the stock regain recent highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Centrica – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards November high of 139p again. You decide to buy exposure to £10,000 worth of Centrica using a CFD, at the current price of 131.2p. To do this, you need £2,000.

Let’s assume Centrica recovers back to 139p Friday highs (+5.9%). Your profit would be £590, from your initial investment of £2000.

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.