Encana Corp. (NYSE: ECA) shares fell back in value on Monday January 23 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 flipped between small gains and losses in early trade on Monday.
The Dow Jones Industrial Average DJIA, -0.14% was off by 13 points, or less than 0.1%, at 19,815, with McDonald’s Corp MCD, -0.99% and General Electric CoGE, -0.95% leading the losses, down more than 1%.
The S&P 500 SPX, -0.18% slipped 2 point to 2,270, with five of the main sectors trading lower. The Nasdaq Composite COMP, -0.09% gained 4 points to 5,558.
Analysts at Vetr Inc. upgraded shares of Encana Corp. (NYSE: ECA) from Buy to Strong-Buy today. Vetr Inc. currently has a rating of Strong-Buy on the shares. The one-year price target of $14.66 is higher than the opening price of $13.10, that has caused a number of other analysts to issue statements on the company recently. Looking back over the last year, Encana Corp. stock has a high of $13.52. Share prices often move to the upside on recommendations and new price targets of professional brokerage firms.
Shares of Encana Corp. (NYSE: ECA) opened at $13.10 yesterday and traded in a range between, $13.04 and $13.15, and last traded at $13.07, which is a decrease of $0.16 from the previous closing price.
Encana Corp. (NYSE: ECA) now has a market cap of 12.71B.
Encana Corp. (NYSE: ECA) Average Daily Trading Volume
662,436 shares crossed the trading desk yesterday, 81 percent below the norm, out of a total float 885,391,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks 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 simply 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 corroboration to see them taking a postion in a stock you’re considering.
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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for Encana Corp. (NYSE: ECA) have ranged from $3.00 – 13.520, and the stock now has a 50-day MA of $12.61 and 200-day MA of $10.45. Today’s last price is 3.37%% below the 52 week high of $13.52.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors watch for companies that have grown their earnings at least 25% or more over a 3 year period.
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