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Methanex (MEOH) Crossed Above the 50-Day Moving Average: What That Means for Investors

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Methanex (MEOH - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, MEOH broke out above the 50-day moving average, suggesting a short-term bullish trend.

One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.

Over the past four weeks, MEOH has gained 7%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.

The bullish case only gets stronger once investors take into account MEOH's positive earnings estimate revisions. There have been 1 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.

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


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