Axcelis Technologies (ACLS) Just Flashed Golden Cross Signal: Do You Buy?

From a technical perspective, Axcelis Technologies (ACLS) is looking like an interesting pick, as it just reached a key level of support. ACLS recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows 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.

ACLS could be on the verge of another rally after moving 8.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.

Looking at ACLS's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 4 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Investors may want to watch ACLS for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

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

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