Equinix (EQIX) Just Flashed Golden Cross Signal: Do You Buy?

From a technical perspective, Equinix (EQIX) is looking like an interesting pick, as it just reached a key level of support. EQIX recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.

Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

EQIX could be on the verge of another rally after moving 10.2% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.

The bullish case solidifies once investors consider EQIX's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 7 higher, while the consensus estimate has increased too.

Investors should think about putting EQIX 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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