Methanex (MEOH) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, MEOH broke through the 50-day moving average, which suggests a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
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.
Once investors consider MEOH's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, and the consensus estimate has increased as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on MEOH for more gains in the near future.
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