CNA.L breaks key support level
Centrica plc (CNA.L) Technical Analysis Report for Apr 16, 2018
CNA.L ended Monday at 140.50 edging lower £0.20 (-0.14%) on low volume. Closing within the prior day's range, prices failed to decisively move past the previous day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Monday's trading range was £1.65 (1.17%), that's far below last trading month's daily average range of £2.94. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 138.45 and 141.25 which it has been in now for the last three days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Breaking below the key support level at 140.70 today, it is now likely to act as resistance going forward. After having been unable to move above 141.25 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 141.05.
Centrica shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend being bullish.
Buying might speed up should prices move above the nearby swing high at 141.25 where further buy stops could get activated.
Both sentiments, the classical technical analysis and our quantitative statistics are in perfect alignment today showing a neutral sentiment for the next trading day.
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