If you follow me you will know that I have been expecting Centrica to retrace to the Golden Zone. It has finally hit target and I have entered the trade. My trade plan is based on a NeoWave Neutral Triangle. A Neutral Triangle is a five-legged correction where the middle wave C is the longest. To obtain the price target for the E wave you can draw a channel across...
Centrica: Will this be a H&S reversal?
H&S island formed at CNA.
Will there be some substantive news in the future that
causes CNA to gap up as well to complete the Island reversal?
Centrica daily chart shows a breach of long term falling trend line (Sep 2013 high to July 2015 high and extended) followed by a inverse head and shoulder breakout.
However, bulls need to be patient since the rally from post Brexit low of 197.50 has been sharp and thus short-term exhaustion around the neckline is likely before the next leg upward resumes....
Support – 201.80, 194.20
Resistance – 219.05, 222.20
Gap down opening on May 5 after prices failed to capitalize on a bullish break from a larger falling trend line on daily chart indicates the recovery from Feb 11 low has ended and bears could take it lower to 194.20 levels in short-run.
On the higher side, gap filling may happen, but requires a move above...
Price has come up to tramline which could be an area where the price falls again due to overbought stochastics, potential wave 4 completion and resistance from way back in 2012 around the 280 level.
Price has broken above tramline but as long as it doesn't go above 304 this analysis still stands in my opinion.
Targeting 200 which would fall on the tramline but...
![CNSUSDT: CENTRIC CNC/USDT analysis [Short]](https://s3.tradingview.com/r/rPgSUZf7_mid.png "CENTRIC CNC/USDT analysis [Short]")
