SkyWest (SKYW) Just Overtook the 20-Day Moving Average

SkyWest (SKYW) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, SKYW broke through the 20-day moving average, which suggests a short-term bullish trend.

The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. 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 14.8%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that SKYW could be poised for a continued surge.

The bullish case solidifies once investors consider SKYW'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 SKYW 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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