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

After reaching an important support level, SkyWest (SKYW) could be a good stock pick from a technical perspective. SKYW 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.

Shares of SKYW have been moving higher over the past four weeks, up 8.7%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that SKYW could be poised for a continued surge.

Once investors consider SKYW's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 3 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on SKYW 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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