Centrica for 14/05/2019

#Gold #Nasdaq Last time we reviewed Centrica (link here), we mentioned a possibility of danger if the price moved below 116p. We especially highlighted this issue by drawing a vertical green line at the proposed Brexit date. While Brexit didn’t happen, on March 28th Centrica managed to wander below 116p anyway. “Go figure”, as they say!

An additional worry was our initial 98p drop target. The market, obviously wishing to spare traders the opportunity of worrying about 98p, manipulated (gapped) the share price down to 97.34p on May 9th. This was really not a good thing, tending confirm further weakness below 92p should power reversal to 82p and hopefully a realistic bounce. There are major reasons for concern, should the 82p level break. Quite alarmingly, it’s the sort of nonsense we tend only associate with the Retail Bank sector of the FTSE 100, essentially the prospect of major price drops which dig deep below any level at which the share price can be regarded as cheap.

In a sentence, below 92p now indicates coming reversal to 82p which, if broken, risks a longer term cycle to 28p, perhaps even 12p with negative news. Generally, when the market spots this width of drop potential against a major share, it will quite sharply promote emergency price rescue movements. This is why we tend hope for a real bounce at the 82p level.

To get out of trouble, the share price requires exceed Blue on the chart, 130p at present. Such an unlikely miracle would propel the share into a zone with an initial target of 161p. If bettered, secondary for the longer term is at 188p.

Instead, we suspect it shall be bounced – hopefully just before – from the 82p level and probably meander around with an upward level of around 120p until such time positive news or market conditions are deemed suitable to allow proper growth.

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

10:05:59PM

BRENT

69.53

               

Success

10:08:19PM

GOLD

1300.26

1281

1274

1265

1292

1301.25

1303.2575

1308.58

1281

‘cess

10:12:04PM

FTSE

7154

               

Success

10:14:11PM

FRANCE

5263

               

Success

10:17:00PM

GERMANY

11854

               

‘cess

10:29:37PM

US500

2807

               

Success

10:40:47PM

DOW

25299

               

‘cess

10:43:24PM

NASDAQ

7304

7295

7276

7227

7384

7387

7415

7455

7323

‘cess

10:46:24PM

JAPAN

20805

               

‘cess

 

13/05/2019 FTSE Closed at 7163 points. Change of -0.56%. Total value traded through LSE was: £ 5,051,510,571 a change of -0.97%

This post has already been read 24 times!

One Reply to “Centrica for 14/05/2019”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.