Centrica
Centrica - NeoWave Neutral Triangle trade planIf you follow me you will know that I have been expecting Centrica to retrace to the Golden Zone. It has finally hit target and I have entered the trade. My trade plan is based on a NeoWave Neutral Triangle. A Neutral Triangle is a five-legged correction where the middle wave C is the longest. To obtain the price target for the E wave you can draw a channel across the ends of waves B - D and clone this and position it at the end of wave A. As you can see the price target has confluence with the 0.618 from the swing high to low. A time target can also be projected because wave A and E tend to be similar in terms of time. After the conclusion of wave E, the thrust implications are between 75%-100% of wave C (but can extend to 161%). Good luck if you are trading CNA.
Centrica: Will this be a H&S reversal?Centrica: Will this be a H&S reversal?
H&S island formed at CNA.
Will there be some substantive news in the future that
causes CNA to gap up as well to complete the Island reversal?
Centrica PLC – Bullish break on chartsCentrica daily chart shows a breach of long term falling trend line (Sep 2013 high to July 2015 high and extended) followed by a inverse head and shoulder breakout.
However, bulls need to be patient since the rally from post Brexit low of 197.50 has been sharp and thus short-term exhaustion around the neckline is likely before the next leg upward resumes.
Overall, it appears on track to test 255 levels over next month or so. Being a classic defensive stock, it could hold its own even if FTSE100 turns risk averse in coming days.
On the lower side, a break below 232 would signal bullish invalidation.
Centrica – bears in control after last week’s gap down opening Support – 201.80, 194.20
Resistance – 219.05, 222.20
Gap down opening on May 5 after prices failed to capitalize on a bullish break from a larger falling trend line on daily chart indicates the recovery from Feb 11 low has ended and bears could take it lower to 194.20 levels in short-run.
On the higher side, gap filling may happen, but requires a move above 219.05 levels. However, bearish invalidation is seen only if prices break above falling trend line.
Short off tramline in CentricaPrice has come up to tramline which could be an area where the price falls again due to overbought stochastics, potential wave 4 completion and resistance from way back in 2012 around the 280 level.
Price has broken above tramline but as long as it doesn't go above 304 this analysis still stands in my opinion.
Targeting 200 which would fall on the tramline but at the moment this is just a long shot in the dark. If the price reaches the tramline before then exiting there would make sense.
The energy industry is in a bit of a lull at the moment which also supports this analysis.
Again this is just an opinion and is no way any guarantee it will happen.
