Methanex - Barchart's Chart of the Day

Methanex (MEOH) is the Barchart Chart of the Day.  The methanol producer and marketer has a Trend Spotter buy signal, a Weighted Alpha of 89.50+ and gained 87.69% in the last year.

The Chart of the Day is Methanex (MEOH).  I found the stock by sorting the All Time High list for frequency of new highs in the last month then eliminated the stocks that did not have positive gains for the last week and month.  I then used the Flipchart feature to review the charts. Since the Trend Spotter signaled a buy on 2/7 the stock gained 17.72%.

MEOH is a Vancouver based company engaged in the worldwide production and marketing of methanol. Methanol, made from natural gas, is a basic chemical building block used to manufacture products such as formaldehyde, MTBE, acetic acid and others. The Company operates production facilities in Canada, the United States, New Zealand and Chile. The Company also markets additional methanol from plants in the US, Trinidad and Europe.

Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.


Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 18 new highs and up 22.29% in the last month
• Relative Strength Index 82.63%
• Barchart computes a technical support level at 69.82
• Recently traded at 71.55 with a 50 day moving average of 61.08

Fundamental factors:

• Market Cap $6.85 billion
• P/E 18.41
• Dividend yield 1.13%
• Revenue expected to grow 22.80% this year and another 4.30% next year
• Earnings estimated to increase 23.60% this year, an additional 4.00% next year and continue to increase by 19.70% annually for the next 5 years
• Wall Street analysts issued 2 strong buy, 5 buy, 2 hold and an under perform recommendation on the stock

This stock should do well over the next year.  Use the 50 day moving average to gauge weakness and the 100 day moving average to preserve profits.