After reaching an important support level, SoFi Technologies, Inc. (SOFI) could be a good stock pick from a technical perspective. SOFI surpassed resistance at the 20-day moving average, suggesting 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 SOFI have been moving higher over the past four weeks, up 34.1%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that SOFI could be poised for a continued surge.
The bullish case solidifies once investors consider SOFI's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, while the consensus estimate has increased too.
Investors should think about putting SOFI on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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SoFi Technologies, Inc. (SOFI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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