Centrica had retraced over the past couple of weeks to fair value within a strong trending market, but our research suggested further upside in this stock.
We waited for price to establish support and then looked for positioning opportunities on the daily time frame.
Price consolidated over a five day period and put in a base presenting an opportunity to get positioned, with good reward to risk assuming the long trend will continue.
Price continued to move in the direction of the trend but failed to move as expected and drifted into another consolidation. Once price hit out first target (100% return) we moved our stop to the new technical higher low in order to reduce risk. This was just under trade entry.
Price attempted but failed to hold into higher prices and retraced stopping our positions out for a small loss. Had we not managed our position in the first place to reduce trade risk we would have lost our full trade risk.
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