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SQM (SQM) Just Reclaimed the 50-Day Moving Average
SQM (SQM - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, SQM broke through the 50-day moving average, which suggests 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.
SQM could be on the verge of another rally after moving 7.7% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.
The bullish case only gets stronger once investors take into account SQM's positive earnings estimate revisions. There have been 2 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors may want to watch SQM for more gains in the near future given the company's key technical level and positive earnings estimate revisions.