Celanese Corporation (NYSE: CE) shares rose in value on Thursday February 2 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, The Dow Jones Industrial Average DJIA, -0.10% fell 34 points, or 0.2%, to 19,858. The S&P 500 SPX, -0.11% lost 4 points to 2,276, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.05% slid 16 points, or 0.3%, to 5,626. Among the most actively traded Nasdaq stocks was Facebook Inc FB, +0.31% which fell 0.7% a day after it reported its quarterly results.
Analysts at Citigroup Inc. upgraded shares of Celanese Corporation (NYSE: CE) from Neutral to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $88.75. The one-year price target of $85.06 is less than the opening price of $86.73, resulting a number of other analysts to issue statements on the stock in recent days. Share prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday Celanese Corporation (NYSE: CE) shares last traded at $87.92, a jump of $1.93 compared to the previous closing price. Opening at $86.73, they varied from $86.72 and $88.75 throughout the day.
Celanese Corporation (NYSE: CE) now has a market cap of 12.59B.
Celanese Corporation (NYSE: CE) Average Daily Trading Volume
The stock’s average daily volume is 807,819 shares out of a total float 142,623,000 and some 391,825 shares traded hands yesterday, 70 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks 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 is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good corroboration to see them taking a postion in a stock you are considering.
Celanese Corporation (NYSE: CE) 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, Celanese Corporation (NYSE: CE) now has a 50-day MA of $82.26 and 200-day MA of $72.39. It has traded in a 52-week range between $55.07 – 88.75 and today’s last price is 0.94%% lower than the 52 week high of $88.75.
Earnings growth is an important factor to research when investing in stocks and investors watch for companies that have grown their earnings by at least 25% over the past 3 years.
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