Traders Are Bearish NovaGold Resources Inc. After Today’s Gap Down

 Traders Are Bearish NovaGold Resources Inc. After Today's Gap Down

The stock of NovaGold Resources Inc. (TSE:NG) gapped down by $0.06 today and has $6.15 target or 8.00% below today’s $6.68 share price. The 5 months technical chart setup indicates high risk for the $2.24 billion company. The gap down was reported on Nov, 7 by Barchart.com. If the $6.15 price target is reached, the company will be worth $179.20M 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 230,819 shares traded hands. NovaGold Resources Inc. (TSE:NG) has risen 8.33% since April 1, 2016 and is uptrending. It has outperformed by 6.38% the S&P500.

NovaGold Resources Inc. (TSE:NG) Ratings Coverage

Out of 3 analysts covering NovaGold Resources (TSE:NG), 0 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 0 are positive. NovaGold Resources has been the topic of 3 analyst reports since January 29, 2016 according to StockzIntelligence Inc. The stock of NovaGold Resources Inc. (TSE:NG) has “Sector Perform” rating given on Tuesday, June 28 by RBC Capital Markets. JP Morgan initiated the stock with “Neutral” rating in Thursday, February 4 report.

Novagold Resources Inc. is a mineral exploration company. The company has a market cap of $2.24 billion. The Firm is engaged in the exploration and development of mineral properties. It currently has negative earnings. The Company’s segment is involved in the exploration and development of mineral properties.

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