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What Magellan Midstream Partners’ Moving Average Crossover Means

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Mar. 7 2016, Published 12:17 p.m. ET

Magellan Midstream Partners’ moving average crossover

Magellan Midstream Partners (MMP) was trading 10.3% above its 100-day moving average on March 4. MMP’s 20-day moving average also moved above its 100-day moving average that day, reflecting a strong rising trend in the stock. When a short-term moving average moves above a long-term moving average, it is considered a bullish sign for the stock.

MMP is currently trading 17% below its 52-week high and 30% above its 52-week low. On a YTD (year-to-date) basis, the stock has risen 4.4%. The midstream operators shown in the chart above have fallen an average of 3% YTD.

Spectra Energy Partners’ (SEP) 20-day moving average moved above its 100-day moving average on January 13. This is considered a bullish sign for the stock. It has risen 8.4% since then.

SEP was trading 7% above its 100-day moving average and 11% above its 20-day moving average on March 4. EQT Midstream Partners’ (EQM) 20-day moving average was 1% above its 100-day moving average on March 4.

Shell Midstream Partners (SHLX) and Buckeye Partners’ (BPL) 20-day moving averages were approaching their 100-day moving averages on March 4. SHLX’s 20-day moving average was 0.09% below its 100-day moving average, and BPL’s 20-day moving average was 4.2% below its 100-day moving average.

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Wall Street consensus median estimates

Wall Street analysts’ consensus median estimates indicate an average rise of 14.3% for these US-based midstream (AMLP) companies. Over the next 12 months, midstream operators MMP and SEP could see gains of 6.2% and 13%, respectively, from their prices on March 4, based on median estimates.

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