Could Encana Corp Recover After Today’s Gap Up?

 Could Encana Corp Recover After Today's Gap Up?

The stock of Encana Corp (TSE:ECA) gapped up by $0.35 today and has $24.50 target or 50.00% above today’s $16.33 share price. The 6 months technical chart setup indicates low risk for the $16.38 billion company. The gap was reported on Nov, 21 by Barchart.com. If the $24.50 price target is reached, the company will be worth $8.19B 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 5.55 million shares traded hands. Encana Corp (TSE:ECA) has risen 84.13% since April 15, 2016 and is uptrending. It has outperformed by 80.27% the S&P500.

Encana Corp (TSE:ECA) Ratings Coverage

Out of 8 analysts covering Encana Corporation (TSE:ECA), 3 rate it a “Buy”, 0 “Sell”, while 5 “Hold”. This means 38% are positive. $16.50 is the highest target while $7.50 is the lowest. The $10.96 average target is -32.88% below today’s ($16.33) stock price. Encana Corporation has been the topic of 25 analyst reports since July 28, 2015 according to StockzIntelligence Inc. The stock has “Buy” rating given by TD Securities on Friday, August 19. The rating was maintained by Scotia Capital with “Top Pick” on Friday, November 4. RBC Capital Markets maintained Encana Corp (TSE:ECA) on Tuesday, December 15 with “Sector Perform” rating. The stock of Encana Corp (TSE:ECA) earned “Sector Perform” rating by RBC Capital Markets on Friday, July 22. The rating was maintained by TD Securities on Friday, November 4 with “Buy”. On Friday, November 18 the stock rating was maintained by TD Securities with “Buy”.

More notable recent Encana Corp (TSE:ECA) news were published by: Fool.com which released: “What Encana Corp’s CEO Wants Investors to Know About Its Growth Plan” on November 14, 2016, also Fool.com with their article: “3 Standout Numbers From Encana Corp’s Q3 Report” published on November 04, 2016, Business.Financialpost.com published: “Cost cutting pays off as Encana Corp posts unexpected profit” on November 03, 2016. More interesting news about Encana Corp (TSE:ECA) were released by: Fool.ca and their article: “Royal Bank of Canada Upgrades Encana Corp.: Time to Buy?” published on November 16, 2016 as well as Fool.ca‘s news article titled: “Encana Corp. Is up Over 200%: This Is Just the Beginning” with publication date: October 26, 2016.

Encana Corp is a Canada-based energy producer, which is engaged in the business of exploration, development, production and marketing of natural gas, oil and natural gas liquids . The company has a market cap of $16.38 billion. The Company’s activities also include the marketing of natural gas, oil and NGLs. It currently has negative earnings. All of its reserves and production are located in North America.

ECA.TO Company Profile

Encana Corporation, incorporated on January 1, 2006, is an energy producer, which is engaged in the business of exploration, development, production and marketing of natural gas, oil and natural gas liquids (NGLs). The Company’s activities also include the marketing of natural gas, oil and NGLs. All of its reserves and production are located in North America. The Firm operates through three divisions: Canadian Operations, USA Operations and Market optimization.

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