The stock of Braskem SA (ADR) (NYSE:BAK) gapped down by $0.17 today and has $12.45 target or 5.00% below today’s $13.10 share price. The 5 months technical chart setup indicates high risk for the $4.27B company. The gap down was reported on Dec, 12 by Barchart.com. If the $12.45 price target is reached, the company will be worth $213.50 million less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 3.11% or $0.42 on December 11, hitting $13.1. About 984,215 shares traded hands or 26.44% up from the average. Braskem SA (ADR) (NYSE:BAK) has risen 40.26% since May 11, 2015 and is uptrending. It has outperformed by 44.67% the S&P500.
According to Zacks Investment Research, “Braskem SA figures as the largest petrochemical operation in Latin America and among the five largest private companies in Brazil. With industrial facilities located in Alagoas, Bahia, S?o Paulo and Rio Grande do Sul, Braskem produces primary base petrochemicals such as ethylene, propylene, benzene, caprolactam, DMT and termoplastic resins (polypropylene, polyethylene, PVC and PET) gas and GLP.” Get a free copy of the Zacks research report on Braskem SA (ADR) (BAK).
Braskem SA - Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.
