Centrica - bullish divergence

*investment opportunity*

A 90% correction since 2014 and following oversold condition there now exists an excellent opportunity to buy this stock.

The 10-day chart above confirms a regular bullish divergence between price action and the oscillators + higher low in price action. This is the start of a trend reversal. Price action is now in the bullish half of the Bollinger band as the mouth is constricting, which suggests a big move is coming.

On the fundamentals Centrica engages in the provision of energy and supply services. There is no end of ‘bad news’ stories on the business. Pay no attention. The only news you need is the headlines in the charts, and they look amazing.

A buy above 42 is good. 1st target 115

2-month chart - broken RSI resistance following oversold condition:

3-month chart - bullish morning star + confirmation

交易進行:

Higher highs, higher lows - safe as houses staying long here

交易進行:

Up 35% so far, not great not terrible. Price action has broken through the upper resistance, very bullish. Safe long hold.

評論:

Up 60% year on year, excellent. There's increasing bearish divergence printing on daily and weekly time frames, it is very possible a visit to the 50 areas is tested as support.

評論:

Price action has now printed a ‘life cross’ on the 10-day chart. On the lower time frames there is some bearish divergence that could result in a test of the 60-70 area.

However the most exiting chart to study is the monthly. For the first time in almost 9 years RSI has moved above 50. This is very bullish for the months ahead.

交易進行:

Currently returned 75%. Stay long until the end of 2023 at least.

交易進行:

No issues keeping long here. Has been excellent since publishing. The next resistance is around 130.

評論:

update to last comment, resistance is at 170 not 130. Trade has returned 110% so far next resistance shall be around 210%

評論:

Update to last update! 130 resistance remains intact.A pullback from these levels should be expected before uptrend continuation.

交易結束：目標達成:

Will be closing this idea now. 300% upside move. And a strong sell signal has printed. Ignoring this is allowing emotions to eat away at that gain.

5-day chart

What should be done with the gain? Rinse and repeat.

Another opportunity as good as if not better than Centrica.

Am all in. Do you know what FTSE stock this is?

3-week chart

評論:

Down 25% since closing.

weekly