The stock of VersaBank (TSE:VB) gapped down by $0.09 today and has $4.84 target or 13.00% below today’s $5.56 share price. The 8 months technical chart setup indicates high risk for the $111.15M company. The gap down was reported on Sep, 13 by Barchart.com. If the $4.84 price target is reached, the company will be worth $14.45M less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. About 26,417 shares traded hands or 656.72% up from the average. VersaBank (TSE:VB) has risen 23.14% since February 3, 2016 and is uptrending. It has outperformed by 6.65% the S&P500.
VersaBank, formerly Pacific & Western Bank of Canada is a Canada chartered bank, which operates using an electronic branchless model. The company has a market cap of $111.15 million. It sources deposits, consumer loans, commercial loans and leases electronically. It has a 11.71 P/E ratio. The Bank also makes residential development and commercial mortgages as its sources through a network of brokers and direct contact with its lending staff.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter.