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SQM (SQM) Just Overtook the 50-Day Moving Average
SQM (SQM - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, SQM broke out above the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
Shares of SQM have been moving higher over the past four weeks, up 6.2%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that SQM could be poised for a continued surge.
The bullish case only gets stronger once investors take into account SQM's positive earnings estimate revisions. There have been 4 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on SQM for more gains in the near future.