Alibaba (BABA) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, BABA broke out above the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.
Shares of BABA have been moving higher over the past four weeks, up 19.4%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that BABA could be poised for a continued surge.
Once investors consider BABA'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.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on BABA for more gains in the near future.
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Alibaba Group Holding Limited (BABA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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