Is Selling Stock Like Encana Corp After Such Gap Down a Winning Strategy?

 Is Selling Stock Like Encana Corp After Such Gap Down a Winning Strategy?

The stock of Encana Corp (TSE:ECA) gapped down by $0.33 today and has $14.71 target or 4.00% below today’s $15.32 share price. The 5 months technical chart setup indicates high risk for the $14.33 billion company. The gap down was reported on Nov, 29 by Barchart.com. If the $14.71 price target is reached, the company will be worth $573.20M 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 1.63 million shares traded hands. Encana Corp (TSE:ECA) has risen 73.98% since April 25, 2016 and is uptrending. It has outperformed by 68.72% 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 -28.46% below today’s ($15.32) 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 stock of Encana Corp (TSE:ECA) earned “Sector Perform” rating by RBC Capital Markets on Tuesday, December 15. As per Friday, November 4, the company rating was maintained by Scotia Capital. TD Securities maintained Encana Corp (TSE:ECA) on Friday, November 18 with “Buy” rating. The stock of Encana Corp (TSE:ECA) earned “Sector Perform” rating by RBC Capital Markets on Friday, July 22. TD Securities maintained the stock with “Buy” rating in Friday, November 4 report.

More important recent Encana Corp (TSE:ECA) news were published by: Fool.com which released: “Encana Corp: It’s All About the Margins” on November 23, 2016, also Fool.com published article titled: “What Encana Corp’s CEO Wants Investors to Know About Its Growth Plan”, Fool.com published: “3 Standout Numbers From Encana Corp’s Q3 Report” on November 04, 2016. More interesting news about Encana Corp (TSE:ECA) was released by: Business.Financialpost.com and their article: “Cost cutting pays off as Encana Corp posts unexpected profit” with publication date: November 03, 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 $14.33 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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