ECA technical signals are flashing as the stock approaches its 52-week high of $21.63 per share. Watching the weekly price charts, Encana has been encountering some long-term resistance, and it’s getting further stretched away from its 200-day moving average on the daily price chart.
In addition, based on the fundamental metrics — including a forward P/E over 18 — the stock is getting pricey.
Those factors indicate Encana may be ripe for a snapback to a lower price range.
How are those "flashing technical signals" looking now that ECA has convincingly broken through the all important $21.60 level? Are you buying? Technicals are great for short term moves, but fundamentals dictate long term.
Wow someone Who shares My exakt sentiments about The stock. I use stock Charts for My technisch trading. R2 on The pivot points is 21.65.. on 2yr weekly we are at key resistances with 200 hovering. Also notice out volumes for The April 19, $20 strike was way over 1300 contracts being thought.