How Analysts Feel About Orocobre Ltd After Today’s Gap Up?
by Franklin Independent — April 13, 2016
The stock of Orocobre Ltd (TSE:ORL) gapped up by $0.03 today and has $4.94 target or 62.00% above today’s $3.05 share price. The 9 months technical chart setup indicates low risk for the $607.49M company. The gap was reported on Apr, 1 by Barchart.com. If the $4.94 price target is reached, the company will be worth $376.64 million more. Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. The stock is up 5.17% or $0.15 after the news, hitting $3.05 per share. About 19,150 shares traded hands. Orocobre Ltd (TSE:ORL) has risen 84.71% since August 25, 2015 and is uptrending. It has outperformed by 74.43% the S&P500.
Orocobre Limited is engaged in the commissioning of the Olaroz Lithium facility and the operation of Borax Argentina SA . The company has a market cap of $607.49 million. The Firm focuses on the exploration and development of lithium, potash and salar mineral deposits. It currently has negative earnings. The Company’s divisions include Corporate, the Olaroz project, South American Salars and Borax
