Our new Cryptocurrency section has arrived! Click here

Less Ads, More Data, More Tools Register for FREE

Centrica Technical Analysis After Today's Positive Trading Statement

Thursday, 21st November 2019 10:41 - by Rajan Dhall

The Centrica share price has pushed to its highest level since 30th July after a positive trading statement.

 

Focusing on the technicals now, there are a couple of key points on the daily chart below that need to be highlighted. 

 

There is a big spike in volume before the announcement. On 18th November 46.791m shares traded and the daily candle was very modest. This is highlighted on the chart below with the arrow. Often this is due to position into key event but they can only be highlighted by watching relative volume levels carefully. 

 

Elsewhere, the wedge formation has broken to the upside on decent volume.  One thing we look for as technical analysts is a pattern/resistance break on decent volume which has been confirmed here. Beyond this, there is often a retracement which can lead to a retest of the pattern high but this is can depend on the velocity of the move.

 

The next resistance on the chart is at 85.06p and this is where price bounced in late June. Often when price gaps lower there is a tendency to fill the gap and in this case, there are two gap levels: one at 90.84p and another higher up at 105.00. 

 

On the support side, the top of the consolidation pattern is at 77.60p and the previous wave low stand at 75.58p. The base of the pattern is also important as 63.98p as it was the lowest level seen since 1998.

 

Bear in mind Centrica is in a very heavy downtrend the resistance levels mentioned above could be used as selling points. This current turnaround in the share price can always be short term but when a three-month price breakout has been noted it is fair to flag it up.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.

Comments

You must be logged in in order to post. Click here to login.


Dr Agbas herbal cure is 100% Guarantee percent sure to cure your (CANCER AND ANY OTHER DISEASE) ,He is the only person that i can boldly say he can cure any types of Disease.my wife noticed she had Cancer for more than 4 year when i met Dr Agbas online how and how he has cured so many people and how greatly he has helped many individuals online,so i contacted him and explained my wife situation to him and behold my wife was cure with his herbal medicine and now we are living happily, so to anyone issue on Cancer or herpes challenges i advised that you contact him for help and he will send you the medication and you will be fine and OK :dragbasspiritualtemple@gmail.com he can also cure any disease such as HIV/AIDS HEPATITIS B,DIABETICS,CANCER,HERPES E.T.C HE is the great herbalist man called Dr.Agbas i must say a big thanks for curing
my wife disease, i owe you in return. Thanks and be blessed sir.his Mobile number: +23490392217722 or what�sapp him on +23490392217722.

naomitorresadi - Sun, 24th Nov 2019 18:24

Login to your account

Don't have an account? Click here to register.