Is Selling Stock Like Playtech PLC After Such Gap Down a Winning Strategy?

 Is Selling Stock Like Playtech PLC After Such Gap Down a Winning Strategy?

The stock of Playtech PLC (LON:PTEC) gapped down by GBX 53.5 today and has GBX 786.98 target or 8.00% below today’s GBX 855.41 share price. The 8 months technical chart setup indicates high risk for the GBX 2.79 billion company. The gap down was reported on Nov, 30 by Barchart.com. If the GBX 786.98 price target is reached, the company will be worth GBX 223.20 million 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%. The stock decreased 7.22% or GBX 66.59 on November 30, hitting GBX 855.41. About 31.01M shares traded hands or 3014.05% up from the average. Playtech PLC (LON:PTEC) has risen 6.18% since May 3, 2016 and is uptrending. It has outperformed by 0.95% the S&P500.

Playtech PLC (LON:PTEC) Ratings Coverage

Out of 15 analysts covering Playtech Ltd (LON:PTEC), 13 rate it a “Buy”, 0 “Sell”, while 2 “Hold”. This means 87% are positive. Playtech Ltd has been the topic of 100 analyst reports since July 24, 2015 according to StockzIntelligence Inc. Liberum Capital maintained the shares of PTEC in a report on Friday, March 4 with “Buy” rating. UBS maintained Playtech PLC (LON:PTEC) rating on Friday, July 24. UBS has “Buy” rating and GBX 990 price target. The stock has “Buy” rating given by Liberum Capital on Thursday, February 25. The rating was maintained by Canaccord Genuity with “Buy” on Thursday, January 14. The stock has “Buy” rating given by Investec on Wednesday, November 2. The firm earned “Buy” rating on Friday, July 24 by Shore Capital. The stock of Playtech PLC (LON:PTEC) earned “Outperform” rating by BNP Paribas on Friday, November 20. The stock of Playtech PLC (LON:PTEC) has “Buy” rating given on Friday, September 2 by Canaccord Genuity. The firm has “Buy” rating by Shore Capital given on Thursday, October 29. Citigroup maintained the shares of PTEC in a report on Friday, October 16 with “Buy” rating.

Playtech plc supplies online gaming software. The company has a market cap of 2.79 billion GBP. The Firm and its subsidiaries develop software platforms for the online and land gambling industry. It has a 31.75 P/E ratio. The Company’s gaming applications include online casino, poker and other pay to play games, bingo, mobile, live gaming, land terminal and fixed-odds games.

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