Sunrun (RUN) Just Flashed Golden Cross Signal: Do You Buy?

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

The 20-day moving average can show signals that are similar to other SMAs as well. 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.

Shares of RUN have been moving higher over the past four weeks, up 8.9%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that RUN could be poised for a continued surge.

Once investors consider RUN's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 2 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

Investors should think about putting RUN 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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