Is Buying Stock Like Capital Power Corp After Such Gap Up a Winning Strategy?

 Is Buying Stock Like Capital Power Corp After Such Gap Up a Winning Strategy?

The stock of Capital Power Corp (TSE:CPX) gapped up by $1.65 today and has $25.12 target or 7.00% above today’s $23.48 share price. The 8 months technical chart setup indicates low risk for the $2.30B company. The gap was reported on Nov, 25 by Barchart.com. If the $25.12 price target is reached, the company will be worth $161.00 million 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 741,023 shares traded hands or 171.60% up from the average. Capital Power Corp (TSE:CPX) has risen 18.83% since April 21, 2016 and is uptrending. It has outperformed by 13.42% the S&P500.

Capital Power Corp (TSE:CPX) Ratings Coverage

Out of 5 analysts covering Capital Power Corporation (TSE:CPX), 0 rate it a “Buy”, 1 “Sell”, while 4 “Hold”. This means 0 are positive. Capital Power Corporation has been the topic of 21 analyst reports since July 28, 2015 according to StockzIntelligence Inc. The company was downgraded on Wednesday, November 25 by IBC. As per Tuesday, October 25, the company rating was maintained by RBC Capital Markets. Scotia Capital maintained it with “Underperform” rating and $18.50 target price in Tuesday, October 25 report. On Tuesday, July 28 the stock rating was maintained by Scotia Capital with “Sector Perform”.

More news for Capital Power Corp (TSE:CPX) were recently published by: Business.Financialpost.com, which released: “Capital Power Corp downgraded despite strong Q3” on October 25, 2016. Cbc.ca‘s article titled: “Capital Power ditches deal to buy power of Sundance coal-fired plant” and published on March 24, 2016 is yet another important article.

Capital Power Corp is a power producing company. The company has a market cap of $2.30 billion. The Firm develops, acquires, operates and optimizes power generation from a range of energy sources. It has a 23.44 P/E ratio. It operates through the operation of electrical generation facilities within Canada (Alberta, British Columbia and Ontario) and in the United States (North Carolina and New Mexico) segment.

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