Digital Realty Trust (DLR) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, DLR broke out above the 50-day moving average, suggesting 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.
DLR has rallied 6.9% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests DLR could be on the verge of another move higher.
Once investors consider DLR's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, and the consensus estimate has increased as well.
Investors may want to watch DLR for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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Digital Realty Trust, Inc. (DLR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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