Encana Corporation (NYSE: ECA) shares rose on Wednesday Jan 4 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, U.S. stocks opened higher on Wednesday as banking stocks led the Dow Jones Industrial Average closer to the 20,000 milestone.
The Dow DJIA, +0.18% gained 25 points, or 0.1%, to 19,906. The S&P 500 SPX, +0.36% climbed four points, or 0.2%, to 2,262. The Nasdaq Composite Index COMP, +0.50% added 13 points, or 0.3%, to 5,447.
Encana Corporation (NYSE: ECA) had its Buy rating reiterated by equities researchers at RBC Capital Markets in a research note to investors. RBC Capital Markets currently has a rating of Buy on the stock. The one-year price target of $13.51 is above the opening price of $12.29, resulting a fair amount of other analysts to report on the company recently. Looking back over the last 52 weeks, Encana Corporation stock has a high of $13.49. Typically, after analysts assign a “reiterated rating” report on a stock, they will later issue recurring updates, such as a price target change.
Encana Corporation (NYSE: ECA) shares last traded at $12.64, which represents a jump of $0.70 or 0.06 over the previous closing price. Opening at $12.29, they varied from $12.29 and $12.64 throughout the day.
Encana Corporation (NYSE: ECA) now has a market cap of 12.30B.
Encana Corporation (NYSE: ECA) Average Daily Trading Volume
3,075,479 shares traded hands yesterday, below normal, out of a total float 885,371,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are considering.
Encana Corporation (NYSE: ECA) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for Encana Corporation (NYSE: ECA) have ranged from $3.00 – 13.49, and the stock now has a 50-day MA of $12.20 and 200-day MA of $10.04. Today’s last price is 0.06% lower than the 52 week high of $13.49.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings at least 25% or more over a 3 year period.
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