The GBp 348 long term support, currently tested, should allow Centrica to rally again.

From a fundamental viewpoint, the company seems undervalued relatively to its peers with a "EV/Sales" ratio of 0.92x. Moreover the Return on Equity of Centrica is at 23.5% for 2013 compare to 13.9% for the sector. It means that the company is more profitable than its competitors.

Currently the stock is oversold and, in the short term, is trading in a bearish trend. This trend may be reversed soon upon contact with the GBp 348 long term support, corresponding to the 50-week moving average. Centrica should be able to bounce in the next trading sessions.

This support is a trading opportunity in order to anticipate a technical rebound towards GBp 374 and by extension towards GBp 395. So it seems opportune to take a long position at the current price. Investors should not insist under GBp 348 and are better off placing a stop loss order under this threshold.