Encana Corp. (NYSE: ECA) shares rose in value on Friday January 20 on lower 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 rose Friday morning as Wall Street closely awaited Donald Trump’s inauguration as the nation’s 45th president.
The Dow Jones Industrial Average DJIA, +0.41% rose 95 points, or 0.5%, to 19,826, while the S&P 500 index SPX, +0.41% climbed 11 points, or 0.5%, to 2,275 and the Nasdaq Composite COMP, +0.37% added 28 points, or 0.6%, to 5,571.
Analysts at KLR Group upgraded shares of Encana Corp. (NYSE: ECA) from Accumulate to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $13.49. A number of other analysts have commented on the stock recently, and the company has secured a consensus one-year price target of $14.59, above the opening price of $13.21, a difference of 10.95 percent. Typically, after analysts publish an upgrade report on a stock, they will later issue periodic updates, such as a price target change.
Yesterday Encana Corp. (NYSE: ECA) shares last traded at $13.33, a jump of $0.26 over the previous closing price. Opening at $13.21, they fluctuated from $13.21 and $13.43 throughout the day.
Encana Corp. (NYSE: ECA) now has a market cap of 12.97B.
Encana Corp. (NYSE: ECA) Average Daily Trading Volume
The stock’s average daily volume is 12,799,200 shares out of a total float 885,391,000 and some 1,094,090 shares crossed the trading desk yesterday, 5 percent lower than the average. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are researching.
Encana Corp. (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.
With that in mind, Encana Corp. (NYSE: ECA) now has a 50-day MA of $12.59 and 200-day MA of $10.43. It has traded in a 52-week range between $3.00 – 13.49 and today’s last price is 1.19%% lower than the 52 week high of $13.49.
Earnings growth is a crucial factor to research when investing in stocks and investors look for companies that have grown their earnings at least 25% or more for a 3 year period.
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