Centrica Plc. is an avoid at the current price level as the stock still looks like in a correction mode. The stock finished trading at 133p a share on the London stock exchange, up by 0.38% compared to the previous close. In terms of technical terms or charting, the stock still looks a little weak and we expect the downside correction to continue for some time. On a daily chart, the stock has formed a triple top pattern which indicates that the upside is restricted and the stock has a more room for downside. The momentum oscillator crossover also indicates the bearishness of the stock. The immediate support and resistance for the stock lies at 124p and 147p respectively. A move above 147p can indicates some upmove in the stock. However, a break below 124p can take down the stock to even lower levels. Therefore traders or investors would be advised to keep an eye at the respective levels and accordingly initiate their positions.
Let’s throw some light on the latest financial results of the company announced on 22nd Feb 2018. As per the results, the company’s adjusted operating profit was down by 17% because of reduced profit in Centrica business. Adjusted earnings were also down by 22% on account of high net finance cost. However, the good news for the investors is that the net debt had come down by £877m to £2.6bn, which is at the lower end of the company’s target. (Read more)