What’s Encana Corporation (ECA) Upside After Forming Wedge Up Chart Pattern?

December 7, 2017 - By Adrian Mccoy

The stock of Encana Corporation (ECA) formed an up wedge with $12.15 target or 4.00 % above today’s $11.68 share price. The 9 months wedge indicates low risk for the $11.46B company. If the $12.15 price target is reached, the company will be worth $458.24M more.
Rising wedges, especially for downward breakouts are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 8% and 24%. The average rise is 28% and the decline is 14%. Wedges has high throwback and pullback rate: 73%, 63% and the percent of wedges meeting target is not more than 50%.

The stock increased 1.65% or $0.19 during the last trading session, reaching $11.68. About 6.24M shares traded. Encana Corporation (NYSE:ECA) has risen 50.13% since December 8, 2016 and is uptrending. It has outperformed by 33.43% the S&P500.

Analysts await Encana Corporation (NYSE:ECA) to report earnings on February, 15. They expect $0.13 EPS, up 44.44 % or $0.04 from last year’s $0.09 per share. ECA’s profit will be $127.51M for 22.46 P/E if the $0.13 EPS becomes a reality. After $0.02 actual EPS reported by Encana Corporation for the previous quarter, Wall Street now forecasts 550.00 % EPS growth.

Encana Corporation (NYSE:ECA) Ratings Coverage

Among 28 analysts covering Encana Corporation (NYSE:ECA), 21 have Buy rating, 2 Sell and 5 Hold. Therefore 75% are positive. Encana Corporation had 111 analyst reports since July 21, 2015 according to SRatingsIntel. The rating was upgraded by Macquarie Research on Tuesday, January 24 to “Outperform”. Scotia Capital downgraded the shares of ECA in report on Tuesday, September 20 to “Underperform” rating. The firm has “Market Perform” rating given on Tuesday, October 13 by FirstEnergy Capital. Canaccord Genuity maintained the stock with “Buy” rating in Wednesday, April 12 report. The stock of Encana Corporation (NYSE:ECA) earned “Hold” rating by GMP Securities on Monday, April 3. Altacorp maintained it with “Buy” rating and $14.5 target in Wednesday, October 18 report. BMO Capital Markets upgraded Encana Corporation (NYSE:ECA) rating on Monday, April 11. BMO Capital Markets has “Outperform” rating and $7.50 target. The stock has “Hold” rating by Jefferies on Tuesday, December 1. The firm earned “Outperform” rating on Thursday, September 28 by Macquarie Research. The stock of Encana Corporation (NYSE:ECA) earned “Neutral” rating by UBS on Thursday, October 6.

More recent Encana Corporation (NYSE:ECA) news were published by: Fool.ca which released: “Is Another Rally on the Horizon for Encana Corp.?” on August 10, 2017. Also Fool.ca published the news titled: “Encana Corp.’s Stock Down on Disappointing Q3 Results: Buy the Dip?” on November 08, 2017. Cbc.ca‘s news article titled: “Encana reports 3rd quarter profit and revenue down from year ago” with publication date: November 08, 2017 was also an interesting one.

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