From a technical perspective, Align Technology (ALGN) is looking like an interesting pick, as it just reached a key level of support. ALGN recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides 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.
Shares of ALGN have been moving higher over the past four weeks, up 9.1%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that ALGN could be poised for a continued surge.
Looking at ALGN'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.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on ALGN for more gains in the near future.
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Align Technology, Inc. (ALGN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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