Continental Resources Inc. (NYSE: CLR) shares rose on Monday Dec 5 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Shares of Continental Resources Inc. (NYSE: CLR) were downgraded by analysts at KLR Group in a note to their investors today. With a rating of Hold on the shares, the company has a 52-week high of $60.30. The one-year price target of $56.94 is less than the opening price of $58.10, that has caused a fair amount of other analysts to comment on the stock recently. Downgrades happen when analysts believe that the future prospects for the security have diminished from the original recommendation, often caused by a material and integral digression in the company’s actions, future outlook or industry.
Shares of Continental Resources Inc. (NYSE: CLR) opened at $58.10 on Tuesday and has traded in a range between, $57.67 and $58.33, and last traded at $58.05, which represents a spike of $0.44 or 0.76% compared to the previous closing price.
Continental Resources Inc. (NYSE: CLR) currently has a market cap of 21.51B.
Continental Resources Inc. (NYSE: CLR) Average Daily Trading Volume
185,341 shares crossed the trading desk yesterday, lower than the average, out of a total float 82,280,000. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to determine heavy volume aggregation or dissemination by institutional investors.
However, one day of high volume buy side trading is not enough to determine a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to 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. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Continental Resources Inc. (NYSE: CLR) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Continental Resources Inc. (NYSE: CLR) now has a 50-day MA of $50.44 and 200-day MA of $47.00. It has traded in a 52-week range between $13.94 – 60.30 and today’s last price is 3.73%% lower than the 52 week high of $60.30.
Earnings growth is a crucial factor to consider when investing in stocks and investors seek companies that have grown their earnings by at least 25% for 3 consecutive years.
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