Is Selling Stock Like NewCastle Gold Ltd After Such Gap Down a Winning Strategy?

 Is Selling Stock Like NewCastle Gold Ltd After Such Gap Down a Winning Strategy?

The stock of NewCastle Gold Ltd (CVE:NCA) gapped down by $0.01 today and has $0.80 target or 13.00% below today’s $0.92 share price. The 9 months technical chart setup indicates high risk for the $140.83M company. The gap down was reported on Nov, 4 by Barchart.com. If the $0.80 price target is reached, the company will be worth $18.31M 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 377,074 shares traded hands. NewCastle Gold Ltd (CVE:NCA) has risen 6.00% since October 5, 2016 and is uptrending. It has outperformed by 4.91% the S&P500.

NewCastle Gold Ltd (CVE:NCA) Ratings Coverage

Out of 5 analysts covering Newcastle Gold Ltd (CVE:NCA), 4 rate it a “Buy”, 0 “Sell”, while 1 “Hold”. This means 80% are positive. $2 is the highest target while $0.30 is the lowest. The $1.08 average target is 17.39% above today’s ($0.92) stock price. Newcastle Gold Ltd has been the topic of 8 analyst reports since August 7, 2015 according to StockzIntelligence Inc. The rating was upgraded by Canaccord Genuity on Friday, August 7 to “Hold”. The firm has “Buy” rating by M Partners given on Tuesday, December 22. TD Securities maintained NewCastle Gold Ltd (CVE:NCA) rating on Wednesday, November 2. TD Securities has “Speculative Buy” rating and $2 price target.

More recent NewCastle Gold Ltd (CVE:NCA) news were published by: Seekingalpha.com which released: “NewCastle Gold – A Penny Stock For Thoughtful Speculation” on July 28, 2016. Also Mining.com published the news titled: “New CEO lifts Newcastle Gold shares” on August 09, 2016. Marketwired.com‘s news article titled: “NewCastle Gold and Catalyst Copper Announce Definitive Agreement” with publication date: April 14, 2016 was also an interesting one.

NewCastle Gold Ltd., formerly Castle Mountain Mining Company Limited, is an exploration gold company. The company has a market cap of $140.83 million. The Company, through its subsidiaries, including Castle Mountain Venture, focuses on the exploration and development of gold deposits in its Permitted Castle Mountain Gold Project, which is in San Bernardino County, California, approximately 70 miles south of Las Vegas, Nevada. It currently has negative earnings. The Castle Mountain Property consists of patented lode claims, unpatented lode and millsite claims, and placer claims for an aggregate total of over 7,460 acres.

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