It Seems Encana Corporation (ECA) Will Go Up. Formed A Few Months Bullish Wedge Up Chart Pattern

December 7, 2017 - By Hazel Jackson

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 6.24 million 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 earnings per share, 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 earnings per share 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. Morgan Stanley maintained the shares of ECA in report on Thursday, October 19 with “Equal-Weight” rating. BMO Capital Markets maintained the stock with “Buy” rating in Saturday, September 5 report. The stock of Encana Corporation (NYSE:ECA) has “Buy” rating given on Wednesday, June 28 by GMP Securities. The rating was maintained by Morgan Stanley on Friday, October 13 with “Equal-Weight”. Barclays Capital upgraded Encana Corporation (NYSE:ECA) rating on Tuesday, October 11. Barclays Capital has “Overweight” rating and $14 target. The firm earned “Buy” rating on Thursday, January 21 by Deutsche Bank. Bernstein upgraded the shares of ECA in report on Friday, September 15 to “Outperform” rating. The company was upgraded on Tuesday, December 15 by Jefferies. Citigroup upgraded Encana Corporation (NYSE:ECA) on Friday, September 30 to “Buy” rating. On Wednesday, January 6 the stock rating was maintained by Barclays Capital with “Equal-Weight”.

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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