PagSeguro Digital Ltd. (PAGS) Crossed Above the 20-Day Moving Average: What That Means for Investors

After reaching an important support level, PagSeguro Digital Ltd. (PAGS) could be a good stock pick from a technical perspective. PAGS surpassed resistance at the 20-day moving average, suggesting 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.

PAGS has rallied 7.1% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests PAGS could be on the verge of another move higher.

The bullish case only gets stronger once investors take into account PAGS's positive earnings estimate revisions. There have been 3 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on PAGS 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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