EOG Resources (EOG) Just Reclaimed the 20-Day Moving Average
EOG Resources (EOG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, EOG crossed above 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.
Like other SMAs, 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.
EOG could be on the verge of another rally after moving 5.1% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.
Once investors consider EOG's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 9 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.
Investors should think about putting EOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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