Is Buying Stock Like Fairfax Financial Holdings Ltd After Such Gap Up a Winning Strategy?

 Is Buying Stock Like Fairfax Financial Holdings Ltd After Such Gap Up a Winning Strategy?

The stock of Fairfax Financial Holdings Ltd (TSE:FFH) gapped up by $0.88 today and has $991.12 target or 44.00% above today’s $688.28 share price. The 7 months technical chart setup indicates low risk for the $16.07 billion company. The gap was reported on Nov, 3 by Barchart.com. If the $991.12 price target is reached, the company will be worth $7.07 billion more.
Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. About 16,368 shares traded hands. Fairfax Financial Holdings Ltd (TSE:FFH) has declined 6.38% since March 30, 2016 and is downtrending. It has underperformed by 7.59% the S&P500.

Fairfax Financial Holdings Ltd (TSE:FFH) Ratings Coverage

Out of 3 analysts covering Fairfax Financial Holdings Limited (TSE:FFH), 1 rate it a “Buy”, 0 “Sell”, while 2 “Hold”. This means 33% are positive. $780 is the highest target while $550 is the lowest. The $693.33 average target is 0.73% above today’s ($688.28) stock price. Fairfax Financial Holdings Limited has been the topic of 5 analyst reports since February 22, 2016 according to StockzIntelligence Inc. The company was maintained on Friday, April 29 by RBC Capital Markets.

More notable recent Fairfax Financial Holdings Ltd (TSE:FFH) news were published by: Fool.ca which released: “5 Reasons to Consider Fairfax Financial Holdings Ltd.” on November 01, 2016, also Fool.ca with their article: “Fairfax Financial Holdings Ltd. Bets on Retail” published on September 14, 2016, Fool.ca published: “Is Fairfax Financial Holdings Ltd. for You?” on September 27, 2016. More interesting news about Fairfax Financial Holdings Ltd (TSE:FFH) were released by: Business.Financialpost.com and their article: “Performance Sports files for bankruptcy protection, with deal to sell assets …” published on October 31, 2016 as well as Marketwired.com‘s news article titled: “Fairfax Financial Holdings Limited: First Quarter Financial Results” with publication date: April 28, 2016.

Fairfax Financial Holdings Limited is a holding company. The company has a market cap of $16.07 billion. The Company, through its subsidiaries, is engaged in property and casualty insurance, and reinsurance and investment management. It has a 17.68 P/E ratio.

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