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

From a fundamental viewpoint, Centrica seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.6 times its revenues.
This valuation is only 13.4 times the two next years earnings.
Furthermore, EPS estimates have been revised upward in the last few months by analysts.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the GBp 235.5 area should stop this trend and allow a technical rebound towards GBp 259.8. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.

Considering technical and fundamental elements, it seems to be an appropriate timing to immediately open a long position in Centrica in order to benefit from the GBp 235.5 support area. A first target price will be the GBp 259.8 resistance, ie a potential of 7.5%. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of GBp 259.8 would validate a bullish trend in order to aim a higher target price.