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Olin (OLN) Just Reclaimed the 20-Day Moving Average

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From a technical perspective, Olin (OLN - Free Report) is looking like an interesting pick, as it just reached a key level of support. OLN recently overtook the 20-day moving average, and this 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.

Moving Average Chart for OLN

Shares of OLN have been moving higher over the past four weeks, up 9.5%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that OLN could be poised for a continued surge.

Once investors consider OLN's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 1 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on OLN for more gains in the near future.


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