Encana Corporation (NYSE: ECA) shares slid back in value in early trading today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at Vetr Inc. upgraded shares of Encana Corporation (NYSE: ECA) from Buy to Strong-Buy today. Vetr Inc. currently has a rating of Strong-Buy on the shares. As a means of comparison, a number of other analysts have issued reports on the stock recently, and Encana Corporation has earned a consensus one-year price target of $13.82, above the opening price of $12.74. Encana Corporation stock has a 52-week high of $13.49. Typically, after analysts publish an upgrade report on a stock, they will later issue other revisions, often followed by a price target change.
Shares of Encana Corporation (NYSE: ECA) opened at $12.74 yesterday and traded in a range between, $12.62 and $12.75, and last traded at $12.72, a decrease of $0.23 compared to the previous closing price.
Encana Corporation (NYSE: ECA) now has a market cap of 12.38B.
Encana Corporation (NYSE: ECA) Average Daily Trading Volume
The stock’s average daily volume is 13,732,800 shares out of a total float 885,381,000 and some 962,400 shares crossed the trading desk yesterday, 48 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in 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 – 13.4900, and the stock now has a 50-day MA of $12.35 and 200-day MA of $10.12. Today’s last price is 5.71%% lower than the 52 week high of $13.49.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors identify companies that have increased their earnings at least 25% or more for a 3 year period.
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