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Livent (LTHM) Recently Broke Out Above the 20-Day Moving Average

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After reaching an important support level, Livent could be a good stock pick from a technical perspective. LTHM surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Moving Average Chart for LTHM

Shares of LTHM have been moving higher over the past four weeks, up 9.4%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that LTHM could be poised for a continued surge.

Once investors consider LTHM's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 5 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

Investors may want to watch LTHM for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

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