Centrica looks like a bright spark
It's not been a great 2024 for the energy company, handing back a chunk of its post-Covid gains. Independent analyst Alistair Strang reveals what his charts say about 2025.
4th December 2024 07:14
by Alistair Strang from Trends and Targets
When we previously reviewed Centrica (LSE:CNA), we made fun of the fact the owner of British Gas refers to itself as an Electrical Service Company. Nowadays, their website trumpets Centrica Plc is an “international Energy and Services Company”.
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And we cannot ignore recent price movements for the shares, especially as the price – by a tiny amount – has managed to close a session above the downtrend since 2023.
We suspect this may prove significant, due to the adherence to this trend shown over the years as a situation has been created where some positive movement on the price is possible. Unfortunately, due to Centrica’s historical parsimonious movements, nothing particularly spectacular is anticipated.
For instance, our software indicates the blue line on the chart is currently at 129.694p and we’re raising an eyebrow because the share closed 3 December at 130p, above the line by a tiny amount. We think this may prove important, simply due to Centrica’s usually small share price advances or reversals.
The immediate situation suggests now above 132p should trigger a cycle to 146p and, visually, some hesitation. Our longer-term secondary calculates at a more useful eventual 172p. Perhaps this is all a bit of a stretch, due to a share price closure just 0.306 of a penny above the trend.
Our obligatory converse review suggests anything below 125p risks triggering reversal to an initial 119p with our secondary, if broken, at 108p and a very possible bounce. But due to the share breaking the blue downtrend, we tend regard this potential with a pinch of salt.
As always, it’s fingers crossed time but Centrica is worth being our next Advent Calendar share.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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