Is Selling Stock Like Western Energy Services Corp After Such Gap Down a Winning Strategy?

 Is Selling Stock Like Western Energy Services Corp After Such Gap Down a Winning Strategy?

The stock of Western Energy Services Corp (TSE:WRG) gapped down by $0.04 today and has $1.90 target or 9.00% below today’s $2.09 share price. The 7 months technical chart setup indicates high risk for the $146.56 million company. The gap down was reported on Nov, 29 by Barchart.com. If the $1.90 price target is reached, the company will be worth $13.19M 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 18,916 shares traded hands. Western Energy Services Corp (TSE:WRG) has declined 20.15% since April 25, 2016 and is downtrending. It has underperformed by 25.41% the S&P500.

Western Energy Services Corp (TSE:WRG) Ratings Coverage

Out of 3 analysts covering Western Energy Services Corp. (TSE:WRG), 0 rate it a “Buy”, 1 “Sell”, while 2 “Hold”. This means 0 are positive. $7 is the highest target while $2.25 is the lowest. The $3.90 average target is 86.60% above today’s ($2.09) stock price. Western Energy Services Corp. has been the topic of 15 analyst reports since August 4, 2015 according to StockzIntelligence Inc. As per Thursday, October 27, the company rating was maintained by Scotia Capital. The rating was upgraded by Raymond James to “Market Perform” on Tuesday, November 3. Canaccord Genuity downgraded Western Energy Services Corp (TSE:WRG) on Thursday, October 15 to “Hold” rating.

Western Energy Services Corp. is a Canada oilfield service company. The company has a market cap of $146.56 million. The Firm is focused on three core business lines: contract drilling, well servicing and oilfield rental equipment services. It currently has negative earnings. It operates in the oilfield service industry through its contract drilling segment in Canada and the United States, and through its production services segment in Canada.

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