Fortinet (FTNT) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, FTNT broke through the 50-day moving average, which suggests a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
Shares of FTNT have been moving higher over the past four weeks, up 5.8%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that FTNT could be poised for a continued surge.
The bullish case solidifies once investors consider FTNT's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 16 higher, while the consensus estimate has increased too.
Investors should think about putting FTNT on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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Fortinet, Inc. (FTNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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