Encana Corp. (NYSE: ECA) shares rose in value Monday Dec 19 with 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, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.
The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.
The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.
Analysts at Vetr Inc. upgraded shares of Encana Corp. (NYSE: ECA) from Sell to Hold today. Vetr Inc. currently has a rating of Hold on the shares. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and the company has earned a consensus one-year price target of $13.08, above the opening price of $12.22. Encana Corp. stock has a 52-week high of $13.49. Share prices often trend to the upside on recommendations and new price targets of professional analysts.
Encana Corp. (NYSE: ECA) shares last traded at $12.28, a jump of $0.09 or 0.74% over the previous closing price. Opening at $12.22, they fluctuated from $12.12 and $12.32 throughout the day.
Encana Corp. (NYSE: ECA) currently has a market cap of 11.95B.
Encana Corp. (NYSE: ECA) Average Daily Trading Volume
774,465 shares traded hands yesterday, below the norm, out of a total float 885,371,000. Trading volume is likely to increase in the next few days as investors often use increases in trading volume to pinpoint substantial volume accumulation or distribution by institutional investors.
As with all possible breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
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 traders to make those trends work in their favor and increase the number of winning trades.
Trades for Encana Corp. (NYSE: ECA) have ranged from $3.00 – 13.49, and the stock now has a 50-day MA of $11.48 and 200-day MA of $9.71. Today’s last price is 8.97%% below 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 grown their earnings at least 25% or more over 3 consecutive years.
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