Virtu Financial (VIRT) Crossed Above the 20-Day Moving Average: What That Means for Investors

After reaching an important support level, Virtu Financial (VIRT) could be a good stock pick from a technical perspective. VIRT surpassed resistance at 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.

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.

Shares of VIRT have been moving higher over the past four weeks, up 7.1%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that VIRT could be poised for a continued surge.

Looking at VIRT's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Investors should think about putting VIRT on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.

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This article originally published on Zacks Investment Research (zacks.com).

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