Is Cenovus Energy Inc. (NYSE:CVE) ready to lock in early pre-market gains? The stock is gapping higher before market open, indicating low risk for the upcoming session. Will the stock hold onto the upward movement today? Investors will be taking close notice. The shares are currently gapping 8.65% pricing at $15.37.
A gap is a change in price levels of a stock between the close of one session and the opening of the next one. Gaps happen for both fundamental and technical factors. If a company’s earnings, for example, are much greater than previously expected, their stock might gap up the next trading session, opening higher than it closed the day before, leaving a gap.
Investors who partake in gap trading use a simple, disciplined approach to buying and selling stocks. Gap traders find stocks that have a price gap from the previous close and then watch the first hour or so of trading in order to identify what the trading range is. If the stock rises above the range then a buy is signaled, and a sell if it falls below.
Cenovus Energy Inc. (NYSE:CVE) stands 5.25% away from its 50-day simple moving average and also 8.71% away from the 200-day average. Recently, the commodity stands -7.19% away from the 52-week high and 68.90% from the 52-week low. The RSI (Relative Strength Index), an indicator that shows price strength by comparing upward and downward close-to-close movements is 59.23.
Cenovus Energy Inc. (NYSE:CVE)’s performance this year to date is 11.81%. The stock has performed -7.90% over the last seven days, -5.68% over the last thirty, and -5.11% over the last three months. Over the last six months, Cenovus Energy Inc.’s stock has been -7.41% and -4.66% for the year.