Centrica share price collapsed to the lowest level since March 7 of this year. It has crashed by more than 26% below the highest level this year. The firm has a market cap of more than 4 billion pounds, making it one of the leading energy companies in the UK.
Centrica is a leading energy company that operates some of the leading brands in the UK. Its brands are firms like British Gas, Bord Gais Energy, and Centrica Business Solutions. The company also owns energy marketing, trading, and upstream solutions. British Gas serves more than 9 million customers across the country. In its trading business, the company trades LNG, gas, power, and energy attributes.
Like other gas companies, the firm has continued struggling as gas prices continued rising. As a result, the firm has suffered substantial challenges. In the first half of the year, the company announced an adjusted EPS of 11p, mostly due to strong upstream volumes. The company’s business was also supported by increased trading and upstream business.
Its adjusted EBITDA rose from 427 million pounds to over 1.1 billion pounds. Adjusted operating profit rose to more than 857 million pounds. Still, the company managed to move from a profit of more than 1 billion pounds to a loss of over 864 million pounds.
The daily chart shows that the CNA share price has been in a strong bearish trend in the past few months. It formed a head and shoulders pattern, which is usually a bearish sign. It has moved below all moving averages while the Relative Strength and MACD have continued falling. The stock has also moved below the important support at 72p, which was the neckline of the head and shoulders pattern.
Therefore, the stock will likely continue falling as sellers target the next key support level at 60p. A move above the important resistance level will invalidate the bearish view.
This post was last modified on Oct 11, 2022, 12:13 BST 12:13