Stock Worth Watching: Is Buying Stock Like POSCO (ADR) After Such Gap Up a Winning Strategy?

Stock Worth Watching: Is Buying Stock Like POSCO (ADR) After Such Gap Up a Winning Strategy?

The stock of POSCO (ADR) (NYSE:PKX) gapped up by $0.33 today and has $78.32 target or 53.00% above today’s $51.19 share price. The 9 months technical chart setup indicates low risk for the $17.29B company. The gap was reported on Oct, 14 by If the $78.32 price target is reached, the company will be worth $9.16 billion 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%. About 246,410 shares traded hands. POSCO (ADR) (NYSE:PKX) has risen 7.81% since March 11, 2016 and is uptrending. It has outperformed by 2.36% the S&P500.

POSCO (ADR) (NYSE:PKX) Ratings Coverage

Out of 4 analysts covering POSCO (NYSE:PKX), 2 rate it a “Buy”, 2 “Sell”, while 0 “Hold”. This means 50% are positive. POSCO has been the topic of 6 analyst reports since August 31, 2015 according to StockzIntelligence Inc. The stock has “Overweight” rating given by JP Morgan on Tuesday, April 5. CLSA downgraded the shares of PKX in a report on Monday, May 9 to “Sell” rating. Zacks downgraded POSCO (ADR) (NYSE:PKX) on Monday, August 31 to “Hold” rating. The stock of POSCO (ADR) (NYSE:PKX) earned “Reduce” rating by HSBC on Friday, April 15. Macquarie Research downgraded the stock to “Neutral” rating in Thursday, September 3 report. Macquarie Research upgraded the stock to “Outperform” rating in Thursday, July 21 report.

According to Zacks Investment Research, “POSCO, formerly known as Pohang Iron & Steel Company Ltd., manufactures hot and cold rolled steel products, heavy plate and other steel products for the construction and shipbuilding industries.”

More important recent POSCO (ADR) (NYSE:PKX) news were published by: which released: “/quotes/zigman/3870025/realtime” on December 21, 2009, also published article titled: “Why the Market Is Dead Wrong About Posco”, published: “POSCO (PKX) Q2 Earnings, Revenues Up Y/Y; ’16 View Intact” on July 22, 2016. More interesting news about POSCO (ADR) (NYSE:PKX) was released by: and their article: “POSCO’s Chart Is Just as Strong as Its Steel” with publication date: July 28, 2016.

PKX Company Profile

POSCO, incorporated on April 1, 1968, is an integrated steel producer. The Firm operates in four divisions: steel, trading, engineering and construction, and others. The steel segment includes production of steel products and sale of such products. The trading segment consists of global trading activities of POSCO Daewoo Corporation (POSCO Daewoo), exporting and importing a range of steel products that are both obtained from and supplied to it, as well as between other suppliers and purchasers in Korea and overseas. The construction segment includes planning, designing and construction of industrial plants, civil engineering projects, and commercial and residential buildings, both in Korea and overseas. The others segment includes power generation, liquefied natural gas (LNG) logistics, and network and system integration.

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