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Imperial Oil (IMO) Crossed Above the 20-Day Moving Average: What That Means for Investors

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From a technical perspective, Imperial Oil (IMO - Free Report) is looking like an interesting pick, as it just reached a key level of support. IMO recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

IMO has rallied 5.1% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests IMO could be on the verge of another move higher.

Once investors consider IMO's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 2 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

Investors may want to watch IMO for more gains in the near future given the company's key technical level and positive earnings estimate revisions.


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