Clayton Williams Energy, Inc. (NYSE:CWEI) stock is gapping down before the bell, indicating risk for investors. This stock should be on high alert today as traders determine whether the selling will continue or if the stock will reverse course today. The current price is at $85.67, indicating a downward gap of -1.37%.
A gap is a space between prices that happens when the stock price makes a move down or up when there is no trading happening in between. Gaps are caused by a number of factors. Poor earnings, negative news, organizational modifications and/or market influences can result in a sudden stock price drop.
Downward gaps occur due to both technical or fundamental factors. If a company’s earnings are much lower than expected, the company’s stock may gap down before the next trading session. This means that the stock price opened lower than it closed the day before, leaving the gap. It is not terribly uncommon for a news report to generate so much buzz that it changes demand to the point where large gap can be seen on a chart. A stock dropping to a new low in the current session may open lower in the next, gapping down for technical reasons.
SIMPLE MOVING AVERAGE
The simple moving average is the most common method used to calculate the moving average of prices. It takes the sum of all of the past closing prices over a specific time period and divides the result by the number of prices used in the calculation. Increasing the number of time periods in the calculation is an effective way to ascertain the strength of the long-term trend and/or the likelihood that it might reverse. Some argue that this type of average is not necessarily useful because each data point in the series has the exact same impact on the result no matter where it occurs in the sequence. Clayton Williams Energy, Inc.’s 20-Day Simple Moving Average is 4.30%. Extending back, their 50-Day Simple Moving Average is 23.84%, looking even further back, their 200-Day Simple Moving Average stands at 164.12%.
Clayton Williams Energy, Inc. (NYSE:CWEI)’s performance this year to date is 195.54%. The stock has performed 0.18% over the last seven days, 13.95% over the last thirty, and 184.01% over the last three months. Over the last six months, Clayton Williams Energy, Inc.’s stock has been 396.53% and 52.86% for the year.
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