Centrica plc : A rally could be expected
By Anas Boumedian
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 286.8 | GBX 0 | GBX 274.4 | -100% |
The company displays attractive valuation and profitability levels, that should improve in the upcoming years. Goldman Sachs has recently confirmed its 'buy' rating, targeting 342 pence.
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction on contact with the GBp 281.6 support area and the downward trend line should stop this trend and allow a technical rebound towards the GBp 303.4 resistance. Moreover, technical indicators show a significant oversold situation, which strengthens this bullish scenario.
The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Centrica security in a good timing. The target price will be GBp 303.4 Investors might place a stop loss order under the GBp 281.6 support in order to avoid important losses.