Centrica shows relatively strong fundamentals and is coming back to attractive prices.

From a fundamental viewpoint, the security is cheap with a P/E ratio of 13.83x for 2013 and 12.77x for 2014. Moreover, EV/Sales ratio is low at 0.94x for this year. Growth perspectives are encouraging with revenues expected to increase 20% by 2015.

After several weeks of upward movement, the stock is coming back close to an important bullish trend after a downward of more than 10%.
Technical indicators illustrate the oversold situation and the area actually tested could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the GBp 383 mid-term resistance and then the long-term target price is GBp 402.2.

So as to make the most of a potential technical rebound of Centrica, it seems opportune to take a long position at the current price. A confirmation of this pattern would enable the security to reach the GBp 402.2 resistance, with a potential gain of 10.5%. Investors should not insist under GBp 351.4 and are better off placing a stop loss order under this threshold.