Goldcorp Inc. (GG) stock down after upgrade at Deutsche Bank AG

Goldcorp Inc. (NYSE: GG) shares slid back in value in early trading today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Analysts at Deutsche Bank AG upgraded shares of Goldcorp Inc. (NYSE: GG) from Sell to Hold today. With a rating of Hold on the stock, the company has a 52-week high of $20.38. As a means of comparison, a number of other analysts have issued reports on the stock in recent days, and Goldcorp Inc. has earned a consensus one-year price target of $21.07, higher than the opening price of $16.50, a difference of 13.10 percent. Share prices often shift to the upside on recommendations and new price targets of professional brokerage firms.

Meanwhile, US stock opened lower amid concerns surrounding the U.S. Department of Justice’s probe into Deutsche Bank AG.

The S&P 500 SPX, -0.25% slipped 5 points, or 0.2%, to 2,162.

The Dow industrials DJIA, -0.26% fell 55 points, or 0.3%, to 18,252.

The Nasdaq Composite COMP, -0.11% was off 13 points, or 0.3%, to 5,298

Shares of Goldcorp Inc. (NYSE: GG) opened at $16.50 yesterday and traded in a range between, $16.07 and $16.64, and last traded at $16.08, which represents a decrease of $0.44 per share or -0.03 over the previous closing price.

Goldcorp Inc. (NYSE: GG) now has a market cap of 13.72B.

Goldcorp Inc.Trading Volume

The stock’s average daily volume is 8,312,880 shares out of a total float 846,670,000 and some 2,095,877 shares traded hands yesterday, below the average. Trading volume is likely to increase in the next few days as investors often use upticks in trading volume to identify substantial volume accumulation or circulation by institutional investors.

As with all possible breakouts, investors look for volume to be at least 40%-50% above 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.

Professional investors such as these 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.

Goldcorp Inc. 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 investors to make those trends work in their favor and increase the number of successful trades.

Trades for Goldcorp Inc. (NYSE: GG) have ranged from $9.46 – 20.38, and the stock now has a 50-day MA of $16.69 and 200-day MA of $17.56. Today’s last price is 0.21% under the 52 week high of $20.38.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have raised their earnings at least 25% or more over 3 consecutive years.

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