Robinhood Markets, Inc. (HOOD) Just Flashed Golden Cross Signal: Do You Buy?

Robinhood Markets, Inc. (HOOD) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, HOOD broke through the 20-day moving average, which suggests 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.

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.

HOOD could be on the verge of another rally after moving 5.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.

Looking at HOOD's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 6 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 HOOD for more gains in the near future.

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

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