Whitecap Resources Inc. : Trading in a steady bullish channel
By Arnaud Le Berre
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
CA$11.04 | CA$12.5 | CA$10.72 | +13.22% |
The company’s fundamentals are still strong. Sales are estimated to be up +48.7% for one year. Analysts from Thomson Reuters consensus have revised largely upward their EPS estimates. The last EPS was at CAD 0.45.
From a technical viewpoint, the security is trading in a bullish trend on all time scales. Increasing moving averages let think there will be no reversal in the coming trading sessions. The 20-day moving average should help to reach soon the CAD 11.2 long term resistance. Above this threshold, a buyer enthusiasm would occur to lead the security towards the upper limit of the bullish channel.
Thanks to these good indicators, it seems relevant to take a long position in Whitecap Resources on crossing the CAD 11.2 resistance. The target price is the CAD 12.5. A stop loss will be set under the CAD 10.8 short term support because a breakdown of this level would damage technical pattern.