Laredo Petroleum (LPI) Just Overtook the 50-Day Moving Average
Laredo Petroleum (LPI) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, LPI 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.
LPI has rallied 12.3% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests LPI could be on the verge of another move higher.
Looking at LPI's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 5 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 LPI for more gains in the near future.
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