ASML (ASML) Recently Broke Out Above the 20-Day Moving Average

ASML (ASML) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, ASML broke through the 20-day moving average, which suggests a short-term bullish trend.

A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives 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 ASML have been moving higher over the past four weeks, up 5.5%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that ASML could be poised for a continued surge.

Looking at ASML'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 should think about putting ASML 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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