Is Buying Stock Like Whitecap Resources Inc. After Such Gap Up a Winning Strategy?

 Is Buying Stock Like Whitecap Resources Inc. After Such Gap Up a Winning Strategy?

The stock of Whitecap Resources Inc. (TSE:WCP) gapped up by $0.51 today and has $12.01 target or 5.00% above today’s $11.44 share price. The 7 months technical chart setup indicates low risk for the $4.06 billion company. The gap was reported on Nov, 30 by Barchart.com. If the $12.01 price target is reached, the company will be worth $203.00 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 1.87M shares traded hands or 42.75% up from the average. Whitecap Resources Inc. (TSE:WCP) has risen 8.26% since April 26, 2016 and is uptrending. It has outperformed by 3.03% the S&P500.

Whitecap Resources Inc. (TSE:WCP) Ratings Coverage

Out of 8 analysts covering Whitecap Resources Inc. (TSE:WCP), 6 rate it a “Buy”, 0 “Sell”, while 2 “Hold”. This means 75% are positive. $18 is the highest target while $7.50 is the lowest. The $13.63 average target is 19.14% above today’s ($11.44) stock price. Whitecap Resources Inc. has been the topic of 23 analyst reports since July 21, 2015 according to StockzIntelligence Inc. Raymond James maintained the stock with “” rating in Monday, June 6 report. The firm earned “Outperform” rating on Thursday, January 14 by BMO Capital Markets. The stock has “Outperform” rating given by IBC on Friday, July 8. The firm earned “Buy” rating on Thursday, November 3 by TD Securities. The rating was downgraded by Barclays Capital on Wednesday, January 20 to “Equal Weight”. Scotia Capital maintained it with “Outperform” rating and $14.50 target price in Thursday, November 3 report.

Another recent and important Whitecap Resources Inc. (TSE:WCP) news was published by Seekingalpha.com which published an article titled: “Whitecap Resources: Emerging Strong From Oil’s Downturn” on May 17, 2016.

Whitecap Resources Inc. is engaged in the acquisition, development, optimization and production of natural gas and crude oil in western Canada. The company has a market cap of $4.06 billion. The Firm is focused on providing sustainable monthly dividends and per share growth through a combination of accretive oil acquisitions and organic growth on existing and acquired assets. It currently has negative earnings. It has activities in Alberta, Saskatchewan and British Columbia.

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