Encana Corp’s Big Gap Up Today Points to Less Stock Risks

 Encana Corp's Big Gap Up Today Points to Less Stock Risks

The stock of Encana Corp (TSE:ECA) gapped up by $0.82 today and has $17.89 target or 9.00% above today’s $16.41 share price. The 9 months technical chart setup indicates low risk for the $15.46B company. The gap was reported on Nov, 30 by Barchart.com. If the $17.89 price target is reached, the company will be worth $1.39B 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 2.84M shares traded hands. Encana Corp (TSE:ECA) has risen 57.62% since April 26, 2016 and is uptrending. It has outperformed by 52.39% 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 -33.21% below today’s ($16.41) stock price. Encana Corporation has been the topic of 25 analyst reports since July 28, 2015 according to StockzIntelligence Inc. TD Securities maintained Encana Corp (TSE:ECA) on Friday, November 18 with “Buy” rating. RBC Capital Markets maintained Encana Corp (TSE:ECA) rating on Friday, July 22. RBC Capital Markets has “Sector Perform” rating and $11.50 price target. As per Friday, November 4, the company rating was maintained by Scotia Capital. TD Securities maintained it with “Buy” rating and $13 target price in Friday, November 4 report. The stock has “Sector Perform” rating given by RBC Capital Markets on Tuesday, December 15. TD Securities maintained the shares of ECA in a report on Friday, August 19 with “Buy” rating.

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 $15.46 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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