Centrica 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.
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.
