After reaching an important support level, Annaly Capital Management (NLY) could be a good stock pick from a technical perspective. NLY surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
NLY has rallied 10.1% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests NLY could be on the verge of another move higher.
The bullish case solidifies once investors consider NLY's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, while the consensus estimate has increased too.
Investors should think about putting NLY on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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Annaly Capital Management Inc (NLY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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