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Methanex (MEOH) Recently Broke Out Above the 20-Day Moving Average
Methanex (MEOH - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, MEOH broke through the 20-day moving average, which suggests a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
MEOH has rallied 6.3% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests MEOH could be on the verge of another move higher.
Looking at MEOH's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 3 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors should think about putting MEOH on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.