Suncor Energy (SU) Just Overtook the 20-Day Moving Average
Suncor Energy (SU) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, SU crossed above the 20-day moving average, suggesting 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.
SU could be on the verge of another rally after moving 7.9% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Once investors consider SU's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 2 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.
Investors should think about putting SU on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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