Is Selling TransCanada Corporation Here a Winning Strategy? The Stock Just Gapped Down

 Is Selling TransCanada Corporation Here a Winning Strategy? The Stock Just Gapped Down

The stock of TransCanada Corporation (TSE:TRP) gapped down by $0.06 today and has $54.96 target or 8.00% below today’s $59.74 share price. The 8 months technical chart setup indicates high risk for the $51.08B company. The gap down was reported on Nov, 29 by Barchart.com. If the $54.96 price target is reached, the company will be worth $4.09B 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 668,816 shares traded hands. TransCanada Corporation (TSE:TRP) has risen 19.96% since April 25, 2016 and is uptrending. It has outperformed by 14.70% the S&P500.

TransCanada Corporation (TSE:TRP) Ratings Coverage

Out of 9 analysts covering TransCanada Corp (TSE:TRP), 8 rate it a “Buy”, 0 “Sell”, while 1 “Hold”. This means 89% are positive. $74 is the highest target while $47 is the lowest. The $65.18 average target is 9.11% above today’s ($59.74) stock price. TransCanada Corp has been the topic of 26 analyst reports since August 4, 2015 according to StockzIntelligence Inc. The stock has “Outperform” rating given by Credit Suisse on Friday, November 18. IBC upgraded it to “Sector Outperformer” rating and $56 target price in Monday, December 7 report. National Bank Canada maintained it with “Sector Perform” rating and $57 target price in Thursday, November 19 report. RBC Capital Markets maintained TransCanada Corporation (TSE:TRP) rating on Thursday, November 17. RBC Capital Markets has “Outperform” rating and $72 price target. The rating was initiated by BMO Capital Markets with “Outperform” on Friday, October 23. The stock has “Outperform” rating given by RBC Capital Markets on Friday, June 10. The rating was maintained by TD Securities with “Buy” on Tuesday, October 11. The firm has “Outperform” rating given on Thursday, November 17 by Scotia Capital. JP Morgan initiated the shares of TRP in a report on Tuesday, December 15 with “Overweight” rating. Bank of America maintained the shares of TRP in a report on Thursday, September 1 with “Buy” rating.

More recent TransCanada Corporation (TSE:TRP) news were published by: Seekingalpha.com which released: “TransCanada Corporation: Solid Steps For A Bright Future?” on November 14, 2016. Also Fool.ca published the news titled: “Did TransCanada Corporation Just Cost Canadian Natural Resources Limited …” on November 25, 2016. Fool.ca‘s news article titled: “Dividend Investors: Should You Buy TransCanada Corporation or Telus Corporation?” with publication date: November 08, 2016 was also an interesting one.

TransCanada Corporation is an energy infrastructure company. The company has a market cap of $51.08 billion. The Firm operates through three divisions: Natural Gas Pipelines, Liquids Pipelines and Energy. It currently has negative earnings. The Natural Gas Pipelines segment consists of the Company’s investments in approximately 67,300 kilometers (km) (approximately 41,900 miles) of regulated natural gas pipelines and over 250 billion cubic feet (Bcf) of regulated natural gas storage facilities.

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