This year has not been the best for Centrica Plc stock (LON: CAN) performance-wise. The British energy and services giant lost around half of its share value from the beginning of this year. But after finding support near the 64-pound mark, the stock started drifting higher again and is now balancing above its short-term tentative upside support line taken from the low of October 10th. That said, the share price seems to be struggling with overcoming the 75.30 barrier, marked by the highest point of October. Although the price structure is of higher lows now, we need a clear break above that 75.30 barrier first, before we could examine the upside, hence why we will stay cautiously-bullish, at least for now.
If, eventually, the break of the 75.30 resistance area happens, this might attract more buying interest and the stock could rise to its next potential resistance zone, at 77.50, marked by the highest point of September. Initially, the price might stall around there, or even correct back down slightly. But if CNA continues to trade above the 75.30 hurdle, this could invite more buyers into the game and the stock could travel beyond the 77.50 obstacle and aim for the 83.40 level, marked by the high of July 30th.
On the downside, if the aforementioned upside line gets broken and the price slides below the 71.30 hurdle, marked by the current low of this week, CAN could open the door for itself to some lower areas. This is when we will aim for the 69.90 obstacle, a break of which may lead the stock to the 65.70 level again, which is marked by the lowest point of October.
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